2017 (3) TMI 550

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....n, AC (AR) for the Respondent ORDER Per D. N. Panda Learned counsel for the appellant says that while manufacturing LABSA (Linear Alkyl Benzene Sulphuric Acid) sulphuric acid was used and in the process of manufacture, a byproduct called spent sulphuric acid comes up. Such bye product whenever sold without end-use necessity of the law, duty was realized and that was paid to the treasury. ....

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.... the case of the appellant is beyond the purview of Rule 6(3) of CENVAT Credit Rules, 2002 / 2004. 3. Learned counsel further submitted that Apex Court in the case of Swadeshi Polytex Ltd. Vs. Collector 1989 (44) ELT 794 (SC) held that when emergence of by-product in the course of manufacture is beyond the control of the manufacturer, the appellant does not intend to manufacture the same. That ....

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.... 4. Revenue on the other hand says that the adjudicating authority has passed proper order and also learned Commissioner (Appeals) agreed to that. 5. Heard both sides and perused the records. 6. The spent sulphuric acid is a technological outcome in the course of manufacture of LABSA using the input sulphuric acid. Appellant had not intended to manufacture the by-product. Its object was on....

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....d the clearances to two different buyers. The first category of buyers are duty paying buyers and the second category buyers are notified end users. Therefore, there appears no prejudice caused by appellant to Revenue to be debarred from grant of the CENVAT credit to it nor the prescribed percentage of levy is imposable on it. 8. The Hon'ble High Court of Madras following the ratio laid down in....