TaxTMI 
TaxTMI 
2026 (9) TMI 950
X X X X Extracts X X X X
X X X X Extracts X X X X
....r-in-Appeal No.COCEXCUS-000-APP-321 to 323-15-16-CE dated 28.01.2016 passed by the Commissioner (Appeals-I), Cochin. 2. Briefly the facts are that the appellant M/s. Nitta Gelatin India Ltd. Kakkanad, Ernakulam manufactured Gelatin and availed cenvat credit on inputs such as hydrochloric acid, furnace oil, acetic acid etc.; input services and capital goods and the same was utilized for payment of Central Excise duty while clearing their final products Gelatin. In the process of manufacture, waste product sludge was generated, which is further treated with acetic acid to make fertilizer called Nutri Gold which was cleared on payment of concessional rate of duty in terms of Notification No. 1/2011-CE dated 01.03.2011 up to 16th March 2012 ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ayment of Central Excise duty in terms of Notification No. 4/2006 dated 01.03.2006. 3.1 It is further submitted that the process of removing impurities is the mainstream of production for bringing the fertilizer/ by-product and no cenvat credit was availed on any inputs or inputs which are used in the said process, therefore the appellant was neither maintaining separate accounts nor reversing any credit in terms of Rule 6(3) of the Cenvat Credit Rules, 2004. This exemption was withdrawn with effect from 01.03.2011 vide Notification No. 1/2011-CE dated 01.03.2011 and the fertilizer was subjected to 1% duty subject to a condition of not claiming cenvat credit on inputs or input services; accordingly, the appellant availed this exemption. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
..... 2014 (303) ELT 321 (S.C.) * CCE vs. Gas Authority of India Ltd. 2008 (232) ELT 7 (S.C.) 3.2 On limitation, it is submitted that the entire demand in the first show-cause notice dated 30.04.2012 is barred by limitation and without prejudice, it is submitted that since 1% duty has already been paid, the demand should have been restricted only to the differential amount. 4. The learned Authorized Representative (AR) submits that since the appellant has availed cenvat credit on the inputs, benefit of Notification cannot be extended to them and accordingly; the orders confirming the demand of duty needs to be sustained. 5. Heard both sides. The appellant was issued with three (3) show-cause notices and the one of the show-cau....
X X X X Extracts X X X X
X X X X Extracts X X X X
..../2011, as proviso to the said Notification states that nothing contained in this notification shall apply to the goods in respect of which credit of duty on inputs or tax on input services has been taken under the provisions of the Cenvat Credit Rules, 2004." 6. The original authority vide Order-in-Original No.03/2013- CE dated 28.01.2013 observed as follows: "11. ...............I find that, assessee utilized some portion of cenvat credit which exclusively pertains to the manufacture of Nutri Gold which is cleared at 1% duty. These inputs have no role in the manufacture of dutiable product named Gelatin. Once the sludge is generated at the intermediate stage the assessee is utilizing various inputs like 2:1 acetic acid, caustic ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... be easily discerned from a combined reading of the aforesaid provisions that the terms used are 'inputs', 'final products', 'by-product', 'waste products', etc. We are of the opinion that these terms have been used taking into account commercial reality in trade. In that context when we scan through Rule 57CC, reference to final product being manufactured with the same common inputs becomes understandable. This Rule did not talk about emergence of final product and a by-product and still said that Rule 57CC will apply. The appellant seeks to apply Rule 57CC when Rule 57D does not talk about application of Rule 57CC to final product and by-product when the by-product emerged as a technological necessity. Accepting the argument of the appell....