2017 (3) TMI 236

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....spect of inputs used in manufacture of woollen yarn. During the process of manufacture of woollen yarn, wool waste arises and the appellants are clearing the same at 'Nil' rate of duty. For the period 01.04.2000 to 31.12.2000 after reversing the Cenvat credit in respect of inputs contained in wool waste cleared at nil rate of duty, the appellants filed refund claim for the same. The refund claim was allowed by the Assistant Commissioner of Central Excise. On appeal by the department, the Commissioner (Appeals) allowed the appeal of the department on the basis of the Larger Bench's decision in the case of Rallis India Ltd. vs. CCE, Salem  2007 (208) ELT 25 (Tri. - L.B.). 3. The Ld. A.R. appearing for the Revenue fairly su....

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....such waste, refuse or by-product, the manufacturer would not be denied full credit of duty paid on inputs used in the manufacture of dutiable final product. Rule 57CC applies only if the modvated inputs are used in the manufacture of both dutiable final product and exempted final product and the manufacturer has not maintained separate accounts so as to ascertain the quantum of inputs used in the manufacture of exempted final products. Therefore, the floor sweepings/waste and scrap/hydrogen arising in the manufacture of biscuits/iron products/oxygen, respectively would be governed by Rule 57CC if they are exempted final products and would be governed by Rule 57D if they are merely waste, refuse or by-product arising in the manufacture of du....