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2019 (4) TMI 743 - AT - Central ExciseCENVAT Credit - impugned waste, cleared by the Appellant, post the insertion of Explanation, in March 2015 - Rule 6 of CCR - Held that:- Rule 6 of the Credit Rules restricts cenvat credit attributable to manufactured exempted goods, cleared from a factory premises. The definition of ‘exempted goods’ and ‘final products’ were amended by insertion of an Explanation vide Notification No. 6/2015-CE (NT) dated March 1, 2015. In terms of the Explanation, non-excisable goods were specifically included within the sweep of exempted goods and final products. Accordingly, their clearance was exigible to Rule 6. The CBEC (Now CBIC) has issued Circular No. 1027/15/2016-CX dated April 25, 2016 wherein it clarified that post insertion of Explanation on March 1, 2015, credit upon clearance of waste, such as aluminium dross etc. needs to be reversed. In case, the revenue had any objection with respect to manner of reversal of cenvat credit, it should have pointed out then and there. Its acceptance implies that revenue completely agreed with the manner of computing reversal. Thus revenue cannot turn around and dispute the manner of reversal without bringing any additional evidence or point of law, not considered earlier - these submissions were duly made before the Appellate Authority which it has failed to take into account. In the absence of sustenance of duty demand, the demand of interest and penalty is also not sustainable - appeal allowed - decided in favor of appellant.
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