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2018 (5) TMI 546 - AT - Central ExciseCENVAT credit - scrap - case of Revenue is that scrap is not an input for the manufacture of final product and no manufacturing process was carried out on the scrap received by the appellant and therefore, the CENVAT credit taken on the scrap is not permissible - Held that: - in the present case it is a fact that the iron and steel was directly supplied to the job worker who availed credit and processed and made semi-finished stampings and some scrap was generated in the process, which was cleared to the appellant on payment of duty and thereafter, the appellant also cleared the scrap on payment of duty which is higher than the one he claimed as CENVAT credit. It is also a fact that the appellant has paid higher duty as scrap than he claimed as CENVAT credit. Further, the entire transaction, in the present case, is revenue neutral as the duty has been paid on removal of scrap on which the credit was availed. In the case of PSL Holdings Ltd. vs. CCE [2003 (7) TMI 117 - CESTAT, MUMBAI], it was held by the Tribunal that utilisation of credit for payment of duty which was not required to be paid, credit was effectively reversed and the Revenue cannot once again ask for reversal of credit - In the present case also, the appellant has availed CENVAT credit on scrap received from the job workers based on the duty paid document and while at the time of clearance of the same, the appellant paid duty at the time of clearance which can be treated as reversal. CENVAT credit allowed - appeal allowed - decided in favor of appellant.
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