2018 (9) TMI 1481

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....d as a by- product by way of technical necessity. Vide the impugned order, duty is being demanded under Rule 6(2) of CCR, 2003/2004, holding that on going through the definition of exempted goods and excisable goods which are relevant in the context of Rule 6 of Cenvat credit Rules 2004, I find that the position as regards Rule 6 ibid is very clear about exempted goods. Whether the exempted goods are by-products or final product will not make any difference in applicability of Rule 6 ibid as long as these goods are excisable goods and are exempted from payment of whole of duty of excise. Further he observed that this position is clear departure from erstwhile Rule 57CC of CER, 1944 which was applicable only when there was manufacture of two....

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.... under exemption, in terms of the bonds executed by the fertilizer plant. 4. The Apex court examined in detail the manufacturing process and after considering the submissions of the Revenue - that Rule 57CC and Rule 6 of the modvat/Cenvat Credit Rules respectively, which Rule require the interpretation, which needs to be applied as the language of these are unambiguous in this regard. The Court recorded that as per the general provisions of Rule 57CC or Rule 6, are common for use of inputs into final products that is one dutiable and the other exempted, for the applicability of the same. When two final products emerge out of use of common inputs, one excisable and other exempt, the provisions will apply. The question of intention of the ....

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....ion of methanol and proportionate credit taken on ethylene glycol was to be reversed. This Court ruled that the emergence of methanol was a technological necessity and no part of ethylene glycol could be said to have been used in production of methanol and indeed it was held that the total quantity of ethylene glycol was used for the production of polyester. The fact in all these three appeals appear to be identical to the facts and the law laid down in Swadeshi Polytex (supra). Therefore, this judgment is squarely applicable. 26. Furthermore, the provisions of Rule 57CC cannot be read in isolation. In order to understand the scheme of Modvat credit contained in this Rule, a combined reading of Rules 57A, 57B and 57D along with Rule 57CC....