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TMI Blog2022 (6) TMI 1177X X X X Extracts X X X X X X X X Extracts X X X X ..... djudicating authority and Commissioner (Appeals) confirmed the demand considering the drum as non excisable goods. He further submits that the empty drums are not generated during the process of manufacture it is cleared after emptying the inputs therefore, the drums are cleared as such and the same is not liable for payment under Rule 6(3). He placed reliance on this tribunal's judgment in the case of M/s Banco Gasket I Ltd vs. CCE &ST- 2021 8 TMI 77 3. Shri Vinod Lukose, Learned Superintendent (AR) reiterates the finding of the impugned order. 4. I have carefully considered the submission made by both sides and perused the records. I find that the lower authorities have confirmed the demand only on the ground that empty drums of cen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) and (h) of Rule 2 could be covered for the purpose of demand under Rule 6(3), for ease of reference clause (d) and (h) of Rule 2 are reproduced below:- (d) "exempted goods" means excisable goods which are exempt from the whole of the duty of excisable leviable thereon, and includes goods which are chargeable to "Nil" rate of duty [ and goods in respect of which the benefit of an exemption under Notification NO.1/2011-CE, dated 1-3-2011 or under entries at S. Nos. 67 and 128 of Noti. No. 12/2012-CE dt. 17-3-2012 is availed]; (h) "final products" means excisable goods manufactured or produced from input, or using input service; On plain reading of the above definition of 'exempted goods' as well as 'final product,' it is clear that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ners and the duty on the inputs may be on "2. ad valorem basis. It is, therefore, clarified that no duty would be payable when such empty containers are cleared from the factory." 5. Thereafter, on the basis of the decision rendered by the CEGAT, a circular was issued on 23rd March, 1999, wherein it has also been observed as under :- The matter has been examined by the Board. In view of the above CEGAT judgment, it has been decided not to demand duty on waste packages/containers used for packaging modvatable inputs "2. when cleared from the factory of the manufacturer availing of Modvat credit and to follow the CEGAT decisions." 6. It is true that after the issuance of the aforesaid circular as appeal was filed before this Court, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment of the Hon'ble Supreme Court in the case of Union of India and others v M/s. DSCL Sugar Ltd and Others (supra) still holds the field. Rule 6 of the Cenvat Credit Rules would have no application for reversal of Cenvat Credit in relation to Bagasse. The Circular No. 1027/15/2016-CX, dated 25-4-2016, contained in Annexure-1 to the writ petition to the extent that it includes Bagasse under the purview of the reversal of credit of input services in terms of Rule 6 of the Cenvat Credit Rules, 2004, as well as the impugned show cause notice dated 24-3-2017 contained in Annexure-2, are hereby quashed." In view of the above judgment of the Hon'ble Allahabad High Court which has taken note of Hon'ble Supreme Court judgment in the case of UNION ..... X X X X Extracts X X X X X X X X Extracts X X X X
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