2021 (10) TMI 307

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....and and Ball Clay. 2. Shri. Rahul Gajera, Learned Counsel appearing on behalf of the appellant submits that Silica Sand and Ball Clay are by-product which are generated during excavation of Lignite. This Silica Sand and Ball Clay are  excavated from the upper layer during the mining which is unavoidably generated as the main product is Lignite, therefore, both the products are being by-product, no amount is required to be paid in terms of Rule 6. He further submits that as per the contract with the contractor for excavation, it is only in respect of Lignite and the payment terms is also with respect to the Lignite only and no payment is made for excavation of by-product namely Silica Sand and Ball Clay, for the reason that Silica Sa....

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.... the extended period is not invokable. • Commr. Of C. Ex. Jaipur-I vs Rajashtan Renewable Energy Corpn. Ltd. 2018 (15) GSTL 661 (Raj.) • Tamilnadu State Transport Corpn. (Coimbatore) LTd. Vs CCE 2019 (28) GSTL 225 (Tri. Chennai.) 3. Shri Vinod Lukose, Learned Counsel appearing on behalf of the revenue reiterates the finding of the impugned order. He further submits that there is no difference between Lignite, Silica Sand and Ball Clay which are excavated in the same mining process, therefore, there are three different minerals, it cannot be considered that two product out of these three are by-product, therefore, the product namely Silica Sand and Ball Clay are also the final product as well as being exempted pr....

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....mation in the target area. The materials lying from the surface level to the first layer of lignite in the target area is termed ar Overburden (OB). For the purpose of the agreement, the OB materials chiefly constitute top soil, silica sand, sandstone, clay, shale etc. B. Method of Mining i. Lignite has been mined by opencast mining method, using conventional mining machinery like hydraulic shovels and dumpers for OB/IB removal and excavation & loading of lignite in to consumer's trucks or dumpers/ trucks of other agency from mines working face as directed by GDMC. Entire mining operations, inclusive of all ancillary operations, are to be carried out by the contractor. The entire topsoil excavated from the mining area will....