Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2013 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (12) TMI 928 - AT - Central ExciseSludge emerged during the process of manufacture - Whether in terms of Rule 6(3)(i), an amount equal to 10%/5% would be payable Held that:- The goods are definitely in the nature of by-product' and waste' Following Rallies India Ltd. Vs Union of India [2008 (12) TMI 46 - HIGH COURT BOMBAY] - when common inputs are used in the manufacture of dutiable and exempted products, the liability to pay the amount of 8% as it was applicable at the relevant time would arise only for final products and not for 'waste'. The Board's Circular No.345/61-97-CX, to the effect that there should be no denial of credit even if a part of an inputs is contained in scrap, waste, residue etc., notwithstanding the fact that the erstwhile Rule 57D is no longer in force further in the CBEC's Central Excise Manual, states that CENVAT credit is also admissible respect of amounts of inputs contained in any of the waste, residue or by-product - the basic idea is that CENVAT credit is admissible so long as the inputs are used in or in relation to the manufacture of final products thus, the 'sludge' is in the nature of by-product or waste and demand of amount of 10% on the value of the 'sludge' under Rule 6(1)(i) of the said Rules 2004 is not sustainable Decided in favour of Assessee.
|