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2018 (7) TMI 674 - AT - Central ExciseCENVAT credit - input services - Rule 6(3A) of the Cenvat Credit Rules - effluent sludge which emerges in the Effluent Treatment Plant - N/N. 76/86 -CE.,dated 10.02.1986 - The Revenue has taken a view that the appellant is required to reverse an amount at the rate of 10% and 5% of the value of sludge cleared as per Rule 6(3) of the Cenvat Credit Rules - Held that:- The sludge which arises is nothing but a waste, which has arisen in the process of manufacture. The same may be excisable and that is the reason the same was granted exemption vide exemption notification. An identical issue came up before the tribunal in the case of M/s. Magnum [2014 (4) TMI 416 - CESTAT NEW DELHI], which dealt with the sludge formation in Effluent Treatment Plant in respect of the appellants paper manufacturing factory. The Tribunal held that there is no requirement for such reversal. There is no justification for ordering reversal under Rule 6(3) of Cenvat Credit Rules, 2004 - appeal allowed - decided in favor of appellant.
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