TMI Blog2023 (3) TMI 949X X X X Extracts X X X X X X X X Extracts X X X X ..... the waste and scrap is not a question here. However, it is found that the Appellant has chosen to pay duty on the waste and scrap by utilizing the CENVAT Credit. The payment of duty on the scrap has not been questioned by the Department. The Department has only questioned the payment of duty by utilizing the CENVAT Credit availed. It is found that the waste and scrap generated is also a product manufactured within the factory for which duty can be paid by utilizing the CENVAT Credit account. Hence, it is held that the payment of duty for the waste and scrap by utilizing the CENVAT Credit account was in order. For payment of duty for the cement, they have utilized the balance CENVAT Credit and the remaining duty through PLA. The refund clai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated in the factory of the Appellant was not their manufactured product. Accordingly, the Department initiated proceedings for recovery of the amount refunded on the ground that the exemption in terms of the said Notification is not available to excisable commodity which is not manufactured in such units. Further, the iron-scrap was generated during the process of fabrication and the plant and machinery was manufactured by the Appellant. Therefore, they were not eligible for the refund in terms of the conditions of the said Notification. 3. The contention of the Appellant is that the duty was not required to be paid on waste and scrap in view of the Notification No.89/95-CE dated 18.05.95, but they paid duty from CENVAT Account, since th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the CENVAT Credit Account. To that extent they paid less duty in PLA for the cement cleared. 6. The Appellant submitted that they have manufactured capital goods and availed credit on the inputs. They have utilized the CENVAT Credit availed for the purpose of payment of duty on the waste and scrap generated during the course of manufacture of the capital goods. Since the CENVAT Credit availed on the inputs has already been utilized for payment of duty for the scrap generated, they have paid the duty for the cement manufactured by utilizing the balance CENVAT Credit and the remaining through the PLA account and claimed refund of the duty paid through PLA only. The Department is of the view that the entire CENVAT Credit availed on the inp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... they have utilized the balance CENVAT Credit and the remaining duty through PLA. The refund claimed was only on the payment of duty through PLA for the cement, which is permissible as per Notification No.33/99-CE dated 08.07.1999. 9. In view of the above, we hold that the payment of duty for the scrap has been correctly paid by utilizing the CENVAT Credit account and the refund of duty paid through PLA on the cement has been correctly claimed by the Appellant as per Notification No.33/99-CE dated 08.07.1999 and hence the refund sanctioned was in order. 10. In view of the above findings, the Appeal filed by the Appellant is allowed with consequential relief, if any. (Dictated and pronounced in the open Court.) - - TaxTMI - TMI ..... X X X X Extracts X X X X X X X X Extracts X X X X
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