2026 (2) TMI 471

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....e Act, 1944. 2. The facts of the case are that the appellant is engaged in the manufacture of Refractory Products falling under Chapter 68, 69 of the CETA. 2.1 In the process of manufacture 'Coal Tar' emerges as a 'byeproduct' during the process of generation of 'Coal Gas' in the Gas Producer Plants (Boiler). 2.2 The 'Coal Gas' is used as fuel in 'Kilns' for firing of Refractory Products. 2.3 The Coal Gas being impure needs cleaning before use in the Kilns. 2.4 To remove the impurity the impure Coal Gas is sent through water scrubber and the emergent clean gas is fed to the Kilns for firing of Refractory goods. 2.5 In the process of cleaning of "Coal Gas", the Coal Tar automatically ....

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....inal dated 21-11- 2016. 2.11 Being aggrieved with the impugned Order-in-Appeal dated 19-03- 2018, the appellant is before us. 3. The ld.Counsel appearing on behalf of the appellant, submits that the "Coal Tar" is untended by-product which automatically emerges in the process of manufacture of Refractory Products and is a technological compulsion and is not a final product, hence, Rule 6 cannot apply. In the instant case, he submits that the entire input/input services are utilized in the manufacture of Refractory Products. It is not the case of the department that the appellant could have utilized lesser quantum of input/input services without generation of Coal Tar. 3.1 He submits that in the case of JSW Steel Ltd., Vs. CCE report....

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....itted that the proceeding in the instant case is initiated on the basis of Circular No.904/24/09-CX Dated 28-10-2009. The said Circular is withdrawn by Circular No.1027/15/2016-CX dated 25-04-2016 on the basis of Judgment of the Hon'ble Supreme Court in the case of UOI Vs. DSCL Sugar Ltd., reported in (2016) 322 ELT 769 (SC), which shows liquid state of law during the material period. In this regard, he relies on the following decisions : (i) M/s Stemcyte India Therapeutics Pvt. Ltd. Vs. CCE reported in (2025) 144 GSTR 662 (S.C.); (ii) Lipi Boilers Ltd. Vs. CCE reported in 2025 (11) TMI 505- Supreme Court. The entire case is base on A.G.(O) Audit of the returns, books etc., hence, no suppression of facts can be imputed ....