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TMI Blog2016 (7) TMI 289X X X X Extracts X X X X X X X X Extracts X X X X ..... eir cenvatable invoices like laminates, shipper carton, duplex, perform (water bottles) hydrogenated vegetable fats and wastes of their noodles without recording the same in the statutory records and on the strength of an invoice book and without discharging duty liability thereon. Therefore, a show cause notice was issued to the appellant to deny the credit on the inputs contained in waste and scrap cleared by the appellant. Both the lower authorities confirmed the demand alongwith interest and penalty was also imposed on the appellant. Aggrieved with the said order, the appellant is before me. 3. Learned Counsel for the appellant submitted that the period in dispute is from December, 1999 to September, 2004. During the period Rule ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inal product, or that the inputs have become waste during the course of manufacture of the final product, whether or not such waste or refuse or by-product is exempt from the whole of the duty of excise leviable thereon or chargeable to nil rate of duty or is not specified as a final product under Rule 57A. (2) Credit of specified duty shall also not be denied or varied in case any intermediate products have come into existence during the course of manufacture of final products or the inputs are used in the manufacture of capital goods as defined in Rule 57Q and such intermediate products or capital goods are not chargeable to duty of excise." 7. On bare reading of the said provision, it is clear that the appellant is not requ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t be denied or varied on the ground that part of the inputs is contained in any waste, refuse, or by-product arising during the manufacture of the final product, or that the inputs have become waste during the course of manufacture of the final product, whether or not such waste or refuse or by-product is exempt from the whole of the duty of excise leviable thereon or chargeable to nil rate of duty or is not specified as a final product under Rule 57A. (2) Credit of specified duty shall also not be denied or varied in case any intermediate products have come into existence during the course of manufacture of final products or the inputs are used in the manufacture of capital goods as defined in Rule 57Q and such intermediate products ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing clarification on certain aspects. 2. We have examined these references. Some modifications have now been carried out in the Cenvat rules and the Cenvat rules have now been notified vide Notification No. 27/2000-C.E. (N.T.), dated 31st March, 2000. These come into force w.e.f. 1st April, 2000. 3. The definition of "capital goods" has been revised. The revised definition is comprehensive enough to specifically include components, spares and accessories as also other capital goods like moulds and dies, refractories and refractory materials, etc. It may be clarified that the components, spares and accessories may fall under any Chapter but they should be components, spares and accessories of the goods specified in Clause (a)(i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods, otherwise it will be an offence. However, the manufacturer shall be entitled to take Cenvat credit as and when the goods sent to the job worker are received back. If part of the goods are received back within 180 days and the rest of the goods are received back after 180 days, the obligation for debiting the credit shall arise only in respect of Cenvat credit attributable to that part which is not received within 180 days. 7. Provision has also been made for permitting the Cenvat credit when the inputs or capital goods are purchased from the first stage dealer or from the second stage dealer. These dealers should be registered under Rule 52AA of the Central Excise Rules. The other procedural requirements in respect of first s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... products which are exported. These provisions are on the same lines as in the case of Modvat rules. 11. In the Cenvat scheme, the documents on which Cenvat credit can be taken have been prescribed to enable verification, where needed, by the department. The admissibility of the amount of Cenvat credit should be discernible from the records of the manufacturer, including the payment made to the sellers of inputs and capital goods. The, basic responsibility is upon manufacturer to prove that inputs or capital goods were purchased and wore used by him for the intended purpose. 12. You are requested to kindly impress upon the officers to go through the Cenvat rules and apply them in the spirit the Cenvat scheme has been announced ..... X X X X Extracts X X X X X X X X Extracts X X X X
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