TMI Blog2019 (2) TMI 566X X X X Extracts X X X X X X X X Extracts X X X X ..... Otherwise, also when the coal is issued for washing and screening and further preparation, it can be safely concluded that the inputs stand issued for utilisation in the manufacture of the final product. After the issuance of the inputs, if waste is generated during further processes, no reversal is required to be done in terms of Rule 3(5). The shale stones have emerged during the course of manufacture of the appellant’s final product which stands initiated with the issuance of the coal. The issue also stands decided by the Tribunal in the case of Indo Rama Synthetics (I) Ltd. Vs. CCE, Nagpur [2016 (4) TMI 624 - CESTAT MUMBAI], wherein it was held that removal of the sludge settled at bottom of the tank during storage of oil cannot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clearance of the inputs and are required to reverse Cenvat credit to that extent in terms of the provisions of Rule 3(5) of Cenvat Credit Rules. Accordingly, proceedings were initiated against them proposing denial of Cenvat credit to the tune of ₹ 2,69,009/-. The said proceedings culminated into the impugned orders passed by the authorities below. 4. The appellants had taken a categorical stand that the shale stones sold by them in the year 2012-2014, to which period the present demand pertains, had emerged out of the coal procured by them prior to 1.3.2011, in respect of which no credit was ever availed by them. Otherwise also they contested the demand on the ground that the provisions of Rule 3(5) of Cenvat Credit Rules are not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rticles. The foreign materials, emerging during the process of segregation have to be treated as process waste and cannot be treated like removal of inputs as such. The segregated foreign material has an altogether different character and use vis-a-vis brass scrap. Value per unit and classification of the segregated foreign material is also different from that of imported brass scrap. Accordingly, clearance of foreign material such as iron, steel, rubber, plastic, dust etc. cannot be treated as clearance of inputs as such. It may be noted that Circular No. 62/2001-Cus. Dated 12.11.2001 [2001 (134) ELT (T39)] does not apply to the issue at hand as the facts at hand are different. 4. In view of above, it is clarified that the clearance of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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