TMI Blog2017 (11) TMI 1240X X X X Extracts X X X X X X X X Extracts X X X X ..... red by them - Held that: - waste and scrap which arises during the course of manufacture of the final products cannot be considered as a product intended to be manufactured by the appellant. It is merely a by-product that emerges as inevitable consequence of manufacturing process and therefore the appellant is not liable to pay duty on such waste and scrap - appeal allowed - decided in favor of ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and 10/2006 dated 1.3.2006. Since the waste and scrap attracts nil rate of duty, the department instructed the appellant to pay 10% of the value of scrap as provided in Rule 6(3)(b) of CENVAT Credit Rules, 2004 as the appellants were not maintaining separate accounts. Thus reversed the credit of ₹ 7,24,026/-. The appellant thereafter came to understand that they are not liable to reverse the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rest and for imposing penalty. After adjudication, the original authority confirmed the demand of interest to the tune of ₹ 91,817/- and imposed penalty of ₹ 40,000/-. In appeal, Commissioner (Appeals) upheld the same. Being aggrieved with the demand of interest and penalty, appellant has filed Appeal No. ST/572/2010. 3. On behalf of the appellant, ld. Counsel Shri M. Karthikeyan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant is not liable to reverse such credit, they are also not liable to pay interest or penalty. 3. Ld. AR Shri K.P. Muralidharan reiterated the findings in the impugned order. 4. Heard both sides. 5. It is indeed correct that the Hon ble Supreme Court in various decision as held that waste and scrap which arises during the course of manufacture of the final products cannot be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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