Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

M/s Nestle India Limited Versus CCE, Delhi-III

2016 (7) TMI 289 - CESTAT CHANDIGARH

Cenvat Credit - Demand of reversal of credit on removal of waste - appellant was removing wastes of their 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. - Held that:- appellant is not required to reverse the credit taken on the inputs contained in waste and scrap duri .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

e that the appellant engaged in the manufacture misc. edible preparations and was removing wastes of their 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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

inputs contained in waste and scrap. She further submitted that Rule 57D of the erstwhile Central Excise Rules, 1944 clearly states that the appellant is entitled to take credit on the inputs and is not required to reverse the credit which is arisen as waste and scrap. She also drew my attention to Circular No. B-4/7/2000-TRU dated 3.4.2000 clarifying the position that cenvat credit shall be admissible in respect of the amount of inputs contained in any of the waste, refuse or by-product. No cre .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the provisions of Rule 57D which are extracted below : - Rule 57D : Credit of duty not to be denied or varied in certain circumstances - (1) Credit of specified duty shall not 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 who .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

the said provision, it is clear that the appellant is not required to reverse the credit on inputs contained in waste and scrap and the appellant is not required to pay duty. The same has been clarified by the CBEC s Circular dated 3.4.2000which has been extracted below : - 5. Some doubts have been raised whether Cenvat credit would be admissible on the part of input that is contained in any waste, refuse or by-product. In this context it is clarified that Cenvat credit shall be admissible in re .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

c Ltd. (supra), it has been observed by this Tribunal as under : - 5.2 The first submission made by the learned Counsel as to whether the remission will be applicable or not need not be gone into as we find that the appellant s case is clearly covered by the situation as envisaged in erstwhile Rule 57D of Central Excise Rules. The provisions of Rule 57D as it existed during the relevant period reads as under. Rule 57D : Credit of duty not to be denied or varied in certain circumstances - (1 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

;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. It can be noticed from the above reproduced rule that the rule specifically indicates that Modvat credit availed on the goods need not be reversed or denied or v .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

are no provisions which are para materia to Rule 57D. In the current Cenvat Credit Rules also there are no provisions like Rule 57D of Central Excise Rules, 1944 but we find that the Government of India vide C.B.E. & C. Circular No. B/4/7/2000-TRU, dated 3-4-2000 at the time of enacting new Cenvat Rules had given the following clarification. Government of India Ministry of Finance (Department of Revenue) Central Board of Excise & Customs, New Delhi Subject: Cenvat Rules - Clarifications .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

.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 sp .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

fice premises of the factory shall not be eligible to Cenvat credit. 5. Some doubts have been raised whether Cenvat credit would be admissible on the part of input that is contained in any waste, refuse or by-product. In this context it is clarified that Cenvat credit shall be admissible in respect of the amount of inputs contained in any of the aforesaid waste, refuse or by-product. Similarly, Cenvat should not be denied if the inputs are used in any intermediate of the final product even .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

inputs or capital 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 permitt .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

it can be taken as and when the capital goods are received in the factory. For such capital goods which were received prior to 1-4-2000 but not installed up to 1-4-2000 also, the Cenvat credit would also be admissible. It may, however, be noted that in respect of all capital goods whether received on or after 1-4-2000 or those that were received prior to 1-4-2000 but not yet installed, the condition that Cenvat credit only up to 50% of the total admissible amount would be available in the financ .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

shall also be admissible. However, such credit can be used only for payment of the respective kind of additional duty on the final product. 10. Provision has also been made for dealing with credit in relation to inputs used in the manufacture of final 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 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     bird's eye view     ↓  


|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version