2010 (7) TMI 1064

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....During the course of manufacture of detergent washing powder, a bye-product, viz., spent sulphuric acid emerges which is classifiable under chapter sub heading 28070010. The said bye-product is cleared on payment of duty and also cleared at nil rate of duty under notification No.4/2006-CE dated 1.3.06 which exempts sulphuric acid, oleum, oxygen and ammonia from payment of duty if used in the manufacture of fertilizers and where such use is elsewhere than in the factory of production, the exemption shall be allowed if procedure set out in the Central Excise (Removal of Goods at Concessional Rate of Duty for Manufacture of Excisable Goods) Rules, 2001 is followed. The respondents had cleared the goods in question, viz., spent sulphuric acid, ....

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....in dutiable goods and exempted goods, it appears that they were required to pay an amount equivalent to 10% of the price of the spent sulphuric acid cleared at nil rate of duty as per the provisions of rule 6(3)(b) of the Cenvat Credit Rules, 2004. 5. In view of the above provisions of law show cause notices were issued to both the respondents seeking confirmation of demand of duty and imposition of penalty. In the case of Nirma, the said show cause notice culminated into an order passed by the adjudicating authority confirming demand of duty of Rs. 2,92,671/-. However the show cause notice issued to M/s. Nisarg Enterprise Pvt. Ltd. was dropped by the Assistant Commissioner and an appeal their against was filed before Commissioner (Appea....