TMI Blog2007 (11) TMI 222X X X X Extracts X X X X X X X X Extracts X X X X ..... nsumption – when assessee has reversed credit on inputs contained in goods to be exported to claim drawback, there is no justification for demanding credit availed by the appellants on the scrap generated, which was only cleared on payment of duty - E/831/2005 - 1339/2007 - Dated:- 27-11-2007 - Dr. S.L. Peeran, Member (J) and Shri T.K. Jayaraman, Member (T) [Order per: T.K. Jayaraman, Membe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en on the 100 Kgs. and as far as the 10 Kgs. are concerned, they did not reverse the Cenvat credit. However, they removed the scrap generated on payment of duty. Revenue proceeded against the appellants on the ground that during the period from November, 2003 to December 2003, the appellants availed wrongly Cenvat credit to the tune of Rs. 90,999/- on the quantity of 12,926 Kgs. of granules. There ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he scrap generated is concerned, it was pointed out that in the present case, the scrap is an excisable commodity and the same is removed on payment of duty. Therefore, there is no violation of any provision of the law and they are rightly entitled for Cenvat credit on the input contained in the waste. 5. The learned Departmental Representative argued that even if they export 100 Kgs. of finis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s also generated. This waste is an excisable commodity and is removed on payment of duty. Therefore, when a product is removed on payment of duty, the input credit can legally be availed and there is no requirement of reversing the Cenvat credit on a product, which was cleared on payment of duty for home consumption. 6.1 As regards the finished product, which is exported, since the appellants ..... X X X X Extracts X X X X X X X X Extracts X X X X
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