TMI Blog2015 (10) TMI 1362X X X X Extracts X X X X X X X X Extracts X X X X ..... ew of the items referred to in clause (5C) to Rule 3 of the Cenvat Credit Rules, 2004, the question of reversal would occur only when the payment of duty is ordered to be remitted under Rule 21 of the Central Excise Rules 2002. The said Rule deals with remission of duty. Admittedly, the assessee has not claimed any remission and no final product has been removed. Hence, for that reason also, reliance was placed on clause (5C) to Rule 3 of the Cenvat Credit Rules, 2004. Following the decision in the case of Fenner India Ltd. (2014 (11) TMI 704 - MADRAS HIGH COURT) I hold that the provisions of Rule 21 of the Central Excise Rules 2002 and provisions of Rule 3(5)(c) and Cenvat Credit Rules 2004 are not applicable to the facts of this case. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Ld. Commissioner (A) the Ld. Commissioner (A) allowed the Cenvat Credit for the period April 2006 September 2007 on the premises that Rule 3(5)(c) of Cenvat Credit Rules 2004 was not in existent but for the period thereafter he denied Cenvat Credit as per Rule 3(5)(c) of the Cenvat Credit Rules 2004. Aggrieved from this order both are in appeal before me. 3. The Ld. Counsel for the assessee submits that in fact input has been taken into the process of manufacturing and during the course of manufacturing these floor sweepings arises. The floor sweepings is the input gone into the process of manufacturing. Therefore, these goods are not liable to duty. Consequently, these are waste arising during the course of manufacturing and they ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2013 (292) ELT A99 (Supreme Court). It is further submitted that as per Rule 3(5)(c) of the Cenvat Credit Rules 2004 the assessee is required to take Cenvat Credit on the inputs which have been lost during the process of floor sweeping etc. 5. The Ld. AR also relied on the decision in the case of Asian Paints (I) Ltd. Vs. CCE Mumbai-II-2004 (173) ELT 187 (Tri-Mumbai) in their support which has been mentioned in the show cause notice. 6. Heard the parties. Considered the submission. 7. In this case the short issue before me is that whether the assessee is entitled to take Cenvat Credit on the inputs which is gone in the process of manufacturer of final product and during the process some inputs have been lost as floor sweeping or n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of law. 8. I have gone through these decisions and found that in this case the appellant has failed to satisfy the commissioner whether the goods destroyed were unfit for use or not. There was no issue before the Hon ble High Court that input lost during the process of manufacturing and the assessee has claimed Cenvat Credit which was denied by the Hon ble High Court. Therefore, said decision have no relevance to the facts of this case. I have gone through the decisions relied on by the Ld. AR in the case of Asian Paints (I) Ltd. (Supra) and found that decision is not applicable to the facts of this case. In the light of the decisions of Larger Bench of this Tribunal in the case of Grasim Industries (Supra). 9. Further, in the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods. 11. We are fully in agreement with the view taken by the Gujarat High Court. Further, clause (5C) to Rule 3 of the Cenvat Credit Rules, 2004 would be invoked where on any goods manufactured or produced by an assessee, the payment of duty is ordered to be remitted under Rule 21 of the Central Excise Rules 2002, the Cenvat Credit taken on the inputs used in the manufacture of production of said goods shall be reversed. 12. In view of the items referred to in clause (5C) to Rule 3 of the Cenvat Credit Rules, 2004 as above, the question of reversal would occur only when the payment of duty is ordered to be remitted under Rule 21 of the Central Excise Rules 2002. The said Rule deals with remission of duty. Admittedly, the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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