2005 (1) TMI 165

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....ion by M/s. Narmada Gelatines Ltd. for waiver of pre-deposit of duty amount of Rs. 2,35,87,876/- under Rule 57AD of Central Excise Rules, 1944 or Rule 6 of Cenvat Credit Rules, 2002 and penalty of Rs. 5 lakhs. 2. Shri B.L. Narasimhan, learned Advocate submitted that the applicants manufacture gelatin out of crushed bones of animals; that they availed Modvat credit of duty paid on hydrochloric aci....

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....sphate emerges as a by-product out of Mono Calcium Phosphate in the process of manufacturing of gelatin; that no modvatable inputs are used in or in relation to the manufacture of Di-calcium Phosphate. He relied upon the judgment in the case of Rama Industries Ltd. v. C.C.E., Chandigarh - 2004 (178) E.L.T. 720 (T) = 2004 (65) RLT 47 (CESTAT - Del.) wherein the same issue was involved and the Tribu....

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....cedure prescribed in Rule 6(2) of the Cenvat Credit Rules has not been followed. He, therefore, submitted that the applicants have to pay an amount equal to 8% of the price of the exempted goods. 4. We have considered the submissions of both the sides. Rule 6(1) of Cenvat Credit Rules, 2002 provides that the CENVAT credit shall not be allowed on such quantity of inputs which is used in the manufa....