2018 (11) TMI 12

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....er slag generated as waste product in the course of manufacture of alloy and non-alloy steel as dutiable final product attracts the provisions of Rule 6 of CENVAT Credit Rules (CCR), 2004 requiring payment of an amount equal to 6% of the value of the said waste product. Since the issue is identical in all the three appeals, therefore, all the three appeals are being disposed of by this common order. Details of all the three appeals are given herein below: Appeal No. Period OIA Amount of 6% of value of slag Penalty E/20810/2018 April 2014 to March 2015 No.BEL-EXCUS-000-APP-MSC-167-2017-18 dated 29.01.2018 Rs.24,047/- Rs.2,404/- E/20880/2018 April 2015 to June 2015 No.BEL-EXCES-000-APP-MSC-359 & 360-2017....

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....0 in para 10 has accepted the legal position for the period from April 2014 to February 2015, however, he has confirmed the proportionate demand of an amount equal to 6% of the value of slag for the month of March 2015 on the ground that Notification No.6/2015-CE dated 1.3.2015 has inserted Explanation 1 to Rule 6(1) of CCR, 2004. 3. Heard both sides and perused the records. 4. Learned counsel for the appellant submitted that the impugned orders are not sustainable in law as the same has been passed without properly appreciating the facts and without considering the binding judicial precedent. He further submitted that the provisions of Rule 6 are applicable only when the manufacturer undertakes to manufacture exempted goods or non-ex....

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....LT 919 (Tri.-Mum.) 5. On the other hand, the learned AR defended the impugned order. 6. After considering the submissions of both the parties and perusal of the material on record, I find that the EOF slag is a waste product which arises in the course of manufacture of dutiable final products. Further, I find that the Division Bench of this Tribunal in appellant's own case for an earlier period has held that Rule 6 will not apply in the case where the exempted by- product or waste emerges in the course of manufacture of dutiable products. It is well settled that slag arising in the course of manufacture of iron and steel is a waste and that the provisions of Rule 6 of CCR, 2004 are not attracted. In this regard, it is relevant to repr....