Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2019 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (2) TMI 9 - AT - Central ExciseCENVAT Credit - exempt goods or not - waste and scrap of batteries - demand of an amount equal to 5% of the value of the defective cells - Rule 6(3)(i) of the CENVAT Credit Rules 2004 - scope of SCN - Held that:- The SCN as seen from page 55 of the Appeal Book, had proposed only to demand ₹ 14,874/- payable in terms of Rule 6(3)(i) ibid being an amount equal to 5% of the value of the exempted goods along with interest. There was absolutely no proposal to demand the Credit attributable to the inputs involved in the waste of dry cell batteries. This only would be the case when the Show Cause Notice has considered the waste and scrap of batteries as excisable goods - Once that proposition has been shot down by the Commissioner (Appeals) in paragraph 16(i) of the impugned Order, the further Order at paragraph 16(ii) directing the appellant to pay up the CENVAT Credit attributable to inputs involved in such non- excisable goods is definitely beyond the scope of the Show Cause Notice. On this very point, the impugned Order cannot sustain. The very issue of requirement of reversal of Credit in such cases has been addressed by the Tribunal in respect of the very same appellant in the case of Eveready Industries India Ltd. [2018 (6) TMI 625 - CESTAT ALLAHABAD], where it was held that C.B.E. & C. Instruction stand that Cenvat credit is admissible in respect of input contained in any of the waste, refuse or by product. Appeal allowed - decided in favor of appellant.
|