Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2018 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (3) TMI 1786 - AT - Central ExciseTaxability - scrap arising out of wear/tear or outcome of repair process within the factory premises - HELD THAT:- The appellants used certain MS items for repair, re-structuring and certain items emerged due to general wear and tear. Those items are identifiable and distinguishable from the manufactured scrap - in the absence of evidence to support that all scrap were arising during manufactured, we find force in the submission of the appellant - duty liability on such normally resultant scrap due to wear and tear or repair etc. cannot be sustained - demand set aside. Reversal of CENVAT Credit - certain goods cleared in terms of Rule 3 (5A) of the Cenvat Credit Rules - HELD THAT:- The appellants have reversed the credit wherever the capital goods were identified and cleared as such - these scrap are generated scrap due to disintegration and general maintenance work, not out of capital goods. Since, no capital goods were identified in demand proceedings to comply with Rule 3 (5A), there is no justification to uphold the demand - demand set aside. Appeal allowed - decided in favor of appellant.
|