TMI Blog2014 (1) TMI 1419X X X X Extracts X X X X X X X X Extracts X X X X ..... ll pay an amount equal to the duty leviable on transaction value”. The capital goods mentioned in the sub-rule are Cenvat credit availed capital goods. Prima facie, sub-rule (5A) of Rule 3 of Cenvat Credit Rules applies in those cases where Cenvat credit availed capital goods after use in the factory are cleared as scrap and waste and only in such situation an amount equal to the duty on transacti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sanitaryware. For manufacture of sanitaryware, they make Plaster of Paris (POP) moulds. For manufacture of POP moulds they use propane gas and input services in respect of which Cenvat credit has been taken. After use, the POP moulds are sold as waste. The Department was of the view of that since in respect of manufacture of POP moulds, Cenvat credit on inputs and input services has been availed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the sides in respect of stay application. 3. Shri Alok Kothari, Chartered Accountant, ld. Counsel for the appellant, pleaded that Rule 3(5A) of the Cenvat Credit Rules, 2004 is not applicable, that this rule is applicable only where Cenvat credit taken capital goods have been cleared after use, as scrap, while in this case, neither any duty has been paid on POP moulds nor credit of that duty ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned in the sub-rule are Cenvat credit availed capital goods. Prima facie, sub-rule (5A) of Rule 3 of Cenvat Credit Rules applies in those cases where Cenvat credit availed capital goods after use in the factory are cleared as scrap and waste and only in such situation an amount equal to the duty on transaction value of such scrapped capital goods shall be chargeable. In this case, POP moulds canno ..... X X X X Extracts X X X X X X X X Extracts X X X X
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