TMI Blog2018 (2) TMI 1556X X X X Extracts X X X X X X X X Extracts X X X X ..... e shape of waste and scrap. As such sub rule 5A would also take its colour from the preceding rules which are relatable to the clearance of capital goods on which credit has been availed - Independent and solo reading of Rule 5A without appreciating the context in which the same is appearing, as has been done by the authorities below, is not in accordance with the principles of interpretation of law. The said sub rule 5A has to be interpreted by applying the principles of noncitur-a-sociis and cannot be picked up independently. The said sub-rule refers to the clearance of capital goods as waste and scrap and not the parts of the capital goods. In such a scenario, even the strict application of sub rule 5A is not called for. Appeal all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ous damaged structural parts have arisen, there was no requirement of payment of any duty or reversal of any Cenvat credit. 3. The appellate authority while dealing with the above plea of the assessee observed as under: From the above judgements it is clear that an amount equal to the duty leviable on transaction value is liable to be paid and it cannot be said that this amount is liable to be paid only when credit has been availed of on the capital goods, scrap of which is being sold. I find that the allegation of revenue that duty is payable on sale of scrap and waste generated out of capital goods cannot be belittled by the contention of the appellants that since they have not taken the credit of duty on capital goods, they canno ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 3 of Cenvat Credit Rules, 2004 relates to the availment of Cenvat credit on capital goods and the clearance of capital goods subsequently, either as such or in the shape of waste and scrap. As such sub rule 5A would also take its colour from the preceding rules which are relatable to the clearance of capital goods on which credit has been availed. Independent and solo reading of Rule 5A without appreciating the context in which the same is appearing, as has been done by the authorities below, is not in accordance with the principles of interpretation of law. The said sub rule 5A has to be interpreted by applying the principles of noncitur-a-sociis and cannot be picked up independently. 5. Apart from the above, I also note that the said ..... X X X X Extracts X X X X X X X X Extracts X X X X
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