2016 (8) TMI 495

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....IA NO. & Date Period Amount of Duty & Penalty (Rs.) 1. E/781/2011 A.R. Sulphonates Pvt. Ltd. Sb/63/Th-I/2011 dated 7.2.2011 1.6.2008 to 31.5.2009 6,93,612/- 2. E/481/2012 CCE, Thane-I YDB (15)Th-I/2012 dated 24.02.2012 April 2010 to January, 2011 2,04,288/- 3. E/954/2012 A.R. Sulphonates Pvt. Ltd. SB (125)125/Th-I/2011 dated 22.3.2011 1.6.2009 to 31.3.2010 1,13,270/- 2. The fact of the case is that the assessee are engaged in the manufacture of Linear Alkyl Benzene Sulphonic Acid (LABSA). For the manufacture of LABSA two inputs are used i.e. Linear Alkyl Benzene (LAB) and Sulphuric Acid. During the process of manufacture of final product i.e. LABSA the product namely Spent Sulph....

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..... Vs. Union of India 2009 (233) E.L. T. 301 (Bom.) (iii) Commissioner of C. Ex. & Customs, Vadodara-I Vs. Sterling Gelatin 2011 (270) E.L.T. 200 (Guj.) upheld by Supreme Court Commissioner V. Sterling Gelatin 2015 (320) E.L. T. A343 (S.C.) (iv) Commissioner of C. Ex. Ahmedabad-III Vs. Nirma Ltd. 2012 (281) E.L. T. 654 (Guj.) (v) Commissioner of Central Excise Vs. Gas Authority of India Ltd. 2008 (281) E.L.T. 7 (S.C.) (vi) Commissioner of C. Ex., Pondicherry Vs. Advance Detergents Ltd. 2015 (322) E.L.T. 508 (Mad.) (vii) Cadbury India Ltd. Vs. C.C.E, Mumbai-III 2015 (322) E.L.T. 765 (Tri. - Mumbai) (viii) Sharad SSK Ltd. Vs. Commissioner of Central Excise, Kolhapur 2015 (321) E.L.T. 468 (Tri. - Mumbai) 4. On the other han....

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.... Acid generates unintentionally and unavoidably in the process therefore by nature itself the Spent Acid is a by-product. The issue whether credit is admissible on the input contained in by-product or whether Rule 6(3)(b) is applicable in respect of clearance of by-product under exemption has been settled by the various judgments as cited by the Ld. Counsel. Moreover as per para 3.7 of Chapter 5 of CBEC Manual of Supplementary Instructions it is provided as under: "CENVAT Credit is also admissible in respect of the amount of input contained in any of the waste, refuse or by-product. Similarly, CENVAT is not to be denied if the inputs are used in any intermediate of the final product even if such intermediate is exempt from payment of dut....