2025 (6) TMI 2048

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....n of electricity . They are also involved in manufacture of Metallurgical Coke, Crude Coal Tar and Naphthalene Sludge, etc., falling under Chapter 27 of Central Excise Tariff Act, 1985.During the manufacture of coke, the final product, certain by-products emerge. One such by-product is Coal Gas which attracts NIL rate of duty under the Central Excise Tariff. The Appellant during the period March, 2011 to December, 2013, had sold coal gas (by product) to various parties and had reversed cenvat credit as per Rule 6(3)(1) when the coal gas was cleared. A Show Cause Notice was issued alleging that the appellant failed to maintain separate accounts for the Cenvat Credit, thereby availing Cenvat Credit for the manufacture of both dutiable and exe....

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....ting authority and submits that the appellant has failed to maintain separate accounts for the cenvat credit and has utilized the credit for the common inputs. Therefore, he justifies the confirmed demand. 7. Heard both the sides in detail. 8. It is observed that admittedly the exempted goods in question necessarily emerges as a by-product in the course of manufacture of the finished goods of the appellant. In view of the practical difficulties, the appellants cannot separately account for the inputs going into the manufacture of the finished goods and the exempted goods. As a matter of fact, the alleged exempted goods are not manufactured goods but are the by-products emerging in the manufacturing process. 9. We find that the issu....

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.... definition clause of those Rules, it is evident that the Tribunal had not misdirected itself in arriving at conclusion that coke fines are part of waste resulting out of the manufacturing process in the establishment of the respondent and cannot be subjected to levy or be required to be accounted in term of [Rule] 6(2) or 6(3)(b) of CENVAT Credit Rules. 9. For the aforesaid reasons, we hold that, on the facts and in the circumstances of the case, the question of law framed in this appeal has to be answered against the Revenue. We do so. Resultantly this appeal fails. 10. We find that the decision of the Kolkata Tribunal is on the very same product and the High Court judgement deals with by-product emanating the course of the ma....