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2016 (4) TMI 624 - AT - Central ExciseExisibility on mineral oil sludge - whether the appellants are required to reverse proportional credit on furnace oil received by them which is equivalent to sludge which gets settled in the tank during storage of oil? - Held that:- This issue has been decided in favour of the appellant in two of their own cases. Further, even the Board circular no. 84/2/86-CX.3 dated 23. 025 .1987 informing the field formation that sludge is not classifiable under Tariff heading i.e. sludge is different from oil is also to that effect. The provision of Rule 3(3) of CENVAT Credit Rules, 2002 invoked by the Revenue are not applicable to the facts of this present case as it is not an input removed by the assessee as such. It is the sludge which gets settled at the bottom of the storage tank which is considered as waste by them and removed as waste. Therefore,sludge is not classifiable under Schedule to the Central Excise Tariff Act, 1985 - Decided in favour of assessee
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