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2017 (11) TMI 1477 - AT - Central ExciseCENVAT credit - Department was of the view that part of the imported scrap cleared has to be considered as clearance of impugned, as such and hence as per Rule 3 (5) of the CCR 2004, the appellant should reverse the credit availed on this portion of the scrap instead of paying duty on the transaction value on such segregated material - Held that: - there is no dispute regarding the receipt of goods at the appellant’s factory. To prove the point, the appellant has submitted detailed documentation through which they have attempted to establish that the part consignments belong to the original bills of entry - for verification, the matter may be remanded. CENVAT credit - Aluminum scrap - The view of the Revenue is that this amounts to clearance of inputs as such and will incur the mischief of rule 3 (5) of the Cenvat Credit Rules, 2004 and requires reversal of credit availed on this portion of the scrap - Held that: - a similar issue pertaining to segregation of copper scrap has arisen in the past and Circular No. 1029/17/2016 CX dated 10/05/2016 was issued by CBEC. The circular has clarified the treatment to be given to the clearance of segregated foreign material - It is not clear from the impugned order whether the Adjudicating Authority had the benefit of the clarification issued by the board at the time of passing the order - matter on remand. Appeal allowed by way of remand.
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