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2019 (3) TMI 790 - CESTAT HYDERABADCENVAT Credit of Additional Duty of Customs (ADC) - ADC paid by the assessee on consignments of waste paper imported - Held that:- As is evident from the term “input” what matters is which material has gone into the process of manufacture. It is true if some element of the input goes into waste, credit cannot be denied on that count. What is important is, what does the input invoice/ bill of entry say and how it classifies the input. As long as input bill of entry is assessed or the input invoice classifies the product in a particular way, it has to be followed unless the classification itself is challenged and modified in an appeal. In respect of bills of entry where the input is treated as waste paper unless such classification has been challenged and modified at the appellate stage, the appellant is entitled to CENVAT credit. The eligibility of CENVAT credit depends solely on raw material used and how it was classified in the input bills of entry/ invoices. The classification made in the bills of entry/ invoices cannot be changed while determining the eligibility of the CENVAT credit. Wherever the inputs bills of entry classified the product as waste paper, the appellant is entitled to the benefit of CENVAT credit on waste paper regardless of the fact that some component of such waste paper may be non-paper. Wherever the bills of entry have classified the inputs under different headings, the appellant is entitled to the credit of additional duty paid on waste paper and not the credit of additional duty paid on plastic waste and metal waste. CENVAT Credit allowed - penalty set aside - appeal allowed in part.
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