TMI Blog2018 (7) TMI 674X X X X Extracts X X X X X X X X Extracts X X X X ..... nal in the case of M/s. Magnum [2014 (4) TMI 416 - CESTAT NEW DELHI], which dealt with the sludge formation in Effluent Treatment Plant in respect of the appellants paper manufacturing factory. The Tribunal held that there is no requirement for such reversal. There is no justification for ordering reversal under Rule 6(3) of Cenvat Credit Rules, 2004 - appeal allowed - decided in favor of appellant. - E/EH/40071/2018 and E/00257/2012, E/00258/2012 - 41214-41215/2018 - Dated:- 15-3-2018 - Smt. Archana Wadhwa, Member (Judicial) And Shri V. Padmanabhan, Member (Technical) For the Appellant: Shri S. Muthu Venkataraman, Adv, For the Respondent: Shri A.Cletus, ADC (AR) ORDER per : V. Padmanabhan The appellant is a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... credit Rules prescribed no such requirement even if some of the inputs are contained in any waste or scrap, which arises during the course of manufacture. The appellant's places reliance on the following case laws. i. M/s. ITC Ltd. V Commissioner of Central Excise, Salem reported in 2014 (303) E.L.T. 557 (Tri. Chennai); ii. M/s. ITC Ltd V Commissioner of Central Excise, Salem Final Order Nos.40521-40522/2014 in Appeal No.E/41211-41212/2013; and iii. M/s. Magnum Ventures Vs CCE, Ghaziabad reported in 2014 (303) E.L.T. 226 (Tri. -Del.). 4. The learned Departmental Representative appearing for the Revenue justified the impugned order, He argued that the sludge, which arises in the Effluent Treatment Plant is to be con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case is regarding the effluent sludge arising in the Effluent Treatment Plant. The sludge arising during the course of manufacture of paper in the appellant's factory is required to be treated in the effluent treatment plants as per the pollution control norms. The sludge, which arises is cleared outside the factory for some consideration but no excise duty is paid on such clearance since the same is exempted in terms of notification No. 76/86-CE. The Revenue has taken a view that the appellant is required to reverse an amount at the rate of 10% and 5% of the value of sludge cleared as per Rule 6(3) of the Cenvat Credit Rules. It is evident on the facts of the case that the sludge which arises is nothing but a waste, which has arisen in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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