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2019 (7) TMI 733 - AT - Central ExciseCENVAT Credit - common inputs used in the manufacture of dutiable and exempted final products - zinc scarp (exempted goods ) produced in process of manufacture of dutiable good - demand an amount equal to 6% of the value of the zinc scarp - non-maintenance of separate records - Rule 6 of CCR, 2004 - period from March 2015 to June 2017 - Department has relied upon Explanation (1) introduced w.e.f. 01.03.2015 to demand the duty raised in the SCN HELD THAT:- It has to be seen that though the said Explanation puts forward a deeming provision that non-excisable goods cleared by payment of consideration are also to be considered as exempted goods, there is no corresponding amendment made in sub-rule (1) of Rule 6 so that the goods that emerged out of process of manufacture falling in clause (1) are also to be considered as exempted goods. As per various decisions, the goods which are not consciously manufactured by the appellants and which emerged in the process of manufacture cannot be considered as goods manufactured by the appellants - Thus, when the zinc scrap which is a waste arising out of process of manufacture of finished goods, is not goods manufactured by the appellant, the same cannot be considered as exempted goods manufactured by them. Credit allowed - appeal allowed - decided in favor of appellant.
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