9911796707
TMI Blog2019 (4) TMI 743X X X X Extracts X X X X X X X X Extracts X X X X ..... es") for the period March 1, 2015 to March 31, 2016. 2. Brief facts of the case are that the Appellant is inter alia engaged in the manufacture of motorcycles and scooters. It avails cenvat credit on inputs, capital goods and input services used in relation to their manufacturing activity. During the relevant period, the Appellant cleared waste and scrap, viz. waste carton box, waste poly pack, wood scrap, empty cans etc, without payment of excise duty. The Appellant also cleared aluminium dross and spent solvent without payment of excise duty. The present case relates to demand of cenvat credit attributable to impugned waste, cleared by the Appellant, post the insertion of Explanation, in March 2015. 3. Heard Mr. Puneet Bansal, Ld. Advoc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation vide Notification No. 6/2015-CE (NT) dated March 1, 2015. In terms of the Explanation, non-excisable goods were specifically included within the sweep of exempted goods and final products. Accordingly, their clearance was exigible to Rule 6. The CBEC (Now CBIC) has issued Circular No. 1027/15/2016-CX dated April 25, 2016 wherein it clarified that post insertion of Explanation on March 1, 2015, credit upon clearance of waste, such as aluminium dross etc. needs to be reversed. 7. A perusal of above Explanation 1 reveals that it merely includes non-excisable goods within the ambit of the term 'exempted goods'. At the same point of time, it fails to take non-manufactured goods into consideration. Simply put, Explanation 1 does not deem ' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cannot be treated as manufactured exempted goods exigible to Rule 6 reversals. The relevant part of this judgment is extracted as under: "Even after the amendment, Explanation-1 extends exemption in terms of Rule 2(d) and 2(h) as read below: (d) "exempted goods" means excisable goods which are exempt from the whole of the duty of excise leviable thereon and includes goods which are chargeable to "Nil" rate of duty..... (h) "final product" means excisable goods manufactured or produced from input,...... 8.2 Since the main condition for Rule 6 is still, "obligation of a manufacturer or producer of final products," it doesn't extend to by products released during the process of manufacture of main product that too without involvement ..... X X X X Extracts X X X X X X X X Extracts X X X X
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