TaxTMI 
TaxTMI 
2018 (5) TMI 207
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....ff Act, 1985. They are availing the cenvat credit facility under Cenvat Credit Rules, 2002/2004. The products wool grease, lanolin (described by the assessee as "lanolin anhydrous" also in clearance invoice) and technical lanolin cleared by the assessee are chargeable to nil rate of duty. During the manufacture of these products, they use cenvatable inputs viz. caustic soda/soda ash light, wool detergents, wool batching agents, servo lube generator oil for generation of electricity. The products wool grease, lanolin and technical lanolin come into existence during the course of manufacture of their final products viz. wool tops etc. The case of the department is that the appellant has not maintained any separate records in respect of common....
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.... application on the by - product cleared at nil rate of duty. I n support, he placed reliance on the following judgments: - (i) Gas authority of India - 2001 (136) ELT 1019 (T); (ii) Gas Authority of India - 2008 (232) ELT 7 (SC); (iii) BOC India Ltd. - 2003 (158) ELT 47 (T) ; (iv) Rallis India Ltd. - 2009 (233) ELT 301 (Bom); (v) Arti Drugs Ltd. - 2001 (133) ELT 385 (T) . He also placed reliance on the Hon'ble Supreme Court's judgment in the case of UOI vs. Hindustan Zinc Ltd. - 2014 (303) ELT 321 (SC). 3. Shri H.M. Dixit, learned Assistant Commissioner (AR) appearing on behalf of the Revenue, reiterates the finding of the impugned order. 4. We have carefully considered the submissions made by both the sides. We find that the fact ....
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....d whether directly or indirectly. " 4.1 From the plain reading of the erstwhile Rule 57D and sub - para (3.7) of CBEC's Central Excise Manual, it is mandated that if any input is contained in the by - product, waste or refuse, the cenvat credit on the said quantity of inputs can not be denied. This provision is with the clear logic that the credit is available on the inputs so long as it is used in the manufacture of final product which is cleared on payment of duty. In the present case, all the inputs are used for manufacture of final product viz. wool tops which is cleared on payment of duty. However, the by - products are emerged unavoidably. Hence in the light of the above provisions, canvat credit cannot be denied on the input contain....
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....ugh recognised by the legislation itself. Significantly this interpretation by the Tribunal in Sterlite (supra) was not appealed against by the department. 28. At the stage we should deal with the argument of non - maintainability of the writ petition filed by Hindustan Zinc Limited before the High Court. No doubt, it had filed writ petition at s how cause stage. However, it was not merely the validity of show cause notice which was questioned. In the writ petition even the vires of Rule 57CC were challenged. That was a reason because of which the writ petitions were entertained, and rightly so, it is a different matter that while interpreting the rule, the High Court chose to read down the said rule and to give an interpretation which wou....