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2014 (12) TMI 315 - AT - Central ExciseCENVAT Credit - waste and scrap of plastics arisen in the course of manufacture of BOPP films - Held that:- Nowhere in the Central Excise Act or Rules, it is stated that when credit is taken, the input becomes non-duty paid. Payment of duty is a question of fact and once duty is paid, the product remains duty-paid and that fact cannot be erased or obliterated on what happens subsequently. Therefore, as rightly observed by this Tribunal in the case of MRF Ltd. (1998 (11) TMI 233 - CEGAT, NEW DELHI) and Supreme Industries - [1997 (3) TMI 529 - CEGAT, MUMBAI], affirmed by the Apex Court [1998 (3) TMI 676 - Supreme Court of India] by taking credit, the inputs do not become non-duty paid. The very fact that credit has been allowed itself is a proof that duty has been paid on the inputs and without payment of duty, no credit can be taken. Therefore, benefit of Notification 53/88 cannot be denied on waste and scrap of plastics manufactured from duty-paid inputs. - Plastic waste and scrap arising in the course of BOPP films cannot be considered as a final product and it is only a byproduct and therefore, provisions of Rule 57D is applicable to the facts of the present case and the respondent has rightly taken the credit on the inputs contained in the waste and scrap of plastics which has arisen as byproduct in the course of manufacture of BOPP films. Rule 57D, as it stood at the relevant time, clearly laid down that credit of specified duty allowed in respect of any inputs shall not be denied or varied on the ground that part of the inputs is contained in any waste, refuse or by-product arising during the manufacture of final product, whether or not such waste, refused or by-product is exempted from whole of the duty of excise thereon or is chargeable to nil rate of duty or is specified as a final product under Rule 57A. - Decided against Revenue.
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