TaxTMI 
TaxTMI 
2018 (2) TMI 74
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....ins to the period October, 2008 to February, 2013. Vide the impugned order the adjudicating authority confirmed the demand of Central Excise duty along with interest and penalty of equal amount on the appellant assessee. In addition, penalty of Rs. 5 Lakh each has been imposed on Shri Azad Shah, General Manager, Finance as well as Shri P Roy, Associate General Manager, Process, under Rule 26 of the Central Excise Rules, 2002. Aggrieved by the impugned order the present appeals have been filed. 2. The appellant is engaged in the manufacture of Zinc, Lead, etc. at its Chanderia Lead Zinc Smelter Plant, in Distt. Chittorgarh. The Appellant is availing CENVAT credit on inputs, capital goods and input services, in terms of the provisions of t....
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....inc Refinery. 5. The molten lead bullion (with impurities, viz. copper, silver, antimony etc.), being heavy, remains at the bottom of the Imperial Smelting Furnace and is taken to the Lead Refinery to obtain Lead Ingots. During the process of refining, Silver emerges as a by-product which contains approx. 65-70%Lead, 10-15% Zinc, 5-7% Copper, 4-5% Silver and certain other impurities. This is further processed to recover Zinc and Lead, thus, leaving Silver (a by-product) during the elimination process. 6. During the relevant period, the Appellants cleared Silver from its factory, without payment of duty. The department entertained a view that Silver is an exempted product, hence the Cenvat credit attributable to inputs and input servic....
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....inc Ltd. 2017 TIOL 2552 CESTAT Delhi. iii. The Adjudicating Authority has also held that the appellant is not entitled to the benefit granted under Rule 6(6)(vi) wherein it has been specified that there will be no need to reverse the credit attributable to inputs and input services in case common inputs/ input services are used in the manufacture of gold or silver falling within Chapter 71 of the First Schedule, arising in the course of manufacture of copper or zinc by smelting. The adjudicating authority did not give benefit of the above rule taking the view that silver is arising during the manufacture of lead by smelting. He continued to argue that silver has emerged during the metallurgical process undertaken in the zinc and....
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....d during the course of the Pyro-metallurgical process by the appellant in which zinc concentrate, lead concentrate as well as bulk concentrate are charged. From the Imperial Smelting Furnace, Zinc bullion which floats at the top and the lead along with impurities such as copper/silver is removed from the bottom and taken to lead refinery, to obtain lead ingots. Silver emerges in the process of refining. 12. We have carefully considered the order cited by the appellant in their favour which pertains to the identical issue for earlier period. The observation of the Tribunal is reproduced below:- " 9. The respondent received ore concentrates and used them fully in the manufacture of zinc and lead. Silver crust which was further put....
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....le 57D above. It can be easily discerned from a combined reading of the aforesaid provisions that the terms used are 'inputs', 'final products', 'by-product', 'waste products', etc. We are of the opinion that these terms have been used taking into account commercial reality in trade. In that context when we scan through Rule 57CC, reference to final product being manufactured with the same common inputs becomes understandable. This Rule did not talk about emergence of final product and a by-product and still said that Rule 57CC will apply. The appellant seeks to apply Rule 57CC when Rule 57D does not talk about application of Rule 57CC to final product and by-product when the byproduct emerged as a technological necessity. Accepting the arg....
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....nvat credit attributable to the quantum of inputs that could be considered as used in the manufacture of silver. 14. Before we part with the matter we also need to discuss the arguments raised by Revenue saying that Rule 6 (6) (vi) will not be applicable to the present case. Above provision in the Cenvat Credit Rules, waives the requirements specified in sub-rule (1) (2) (3) and (4) in case the excisable goods removed without payment of duty are gold or silver arising in the course of manufacture of copper or zinc by smelting. The view taken by revenue is that silver is emerging in the process of manufacture of lead not zinc and hence it has been argued that Rule 6 (6) (vi) will not be applicable. After considering the process of manu....