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2019 (9) TMI 1375 - AT - Central ExciseCENVAT credit - exempt goods - Reprocessed Polypropylene Granules (RPG) - Rule 6(3)(b)/Rule 6(3)(i) of the Cenvat Credit Rules, 2004 - HELD THAT:- PP granules are used in the manufacture of dutiable goods i.e. BOPP film and waste/scrap. Since both the goods manufactured using PP granules are dutiable in nature, Rule 6 of the Rules is not applicable in the case of the company. Hence, the question of demanding duty to the extent of 10% / 6% / 5% of the value exempted RPG will not arise. Also, since for the small quantity of lubricants used in the RPG plant, no credit is availed by the company based on internal consumption records, there is no requirement to pay duty on the same under Rule 6 of the Rules by the company. The department has failed to take into consideration this interpretation of Rule 6 and the demand is therefore unsustainable. Appeal allowed - decided in favor of appellant.
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