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TMI Blog2025 (4) TMI 361X X X X Extracts X X X X X X X X Extracts X X X X ..... ke lead acid batteries, electric generator sets, air-conditioners, power interface unit, switch mode power systems, battery tank etc. and availed CENVAT credit; after use for some time, the capital goods discarded and cleared as scrap. DGCEI investigated the case and concluded that the appellants were required to reverse credit as applicable to capital goods removed as such in terms of Rule 3(5A) of CENVAT Credit Rules, 2004; two show cause notices dated 20.03.2018 and 28.01.2019, covering the periods April 2015 to March 2016 and April 2016 to June 2017, demanding Rs.31,89,74,260/- and Rs.34,75,90, 509/- under Rule 14 of CENVAT Credit Rules read with Section 73(1A), respectively, were issued to the appellants the proposals in the show cause ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bmits that the appellants are not liable to pay any amount under Rule (5A)(a) of CENVAT Credit Rules; under the said Rule, the manufacturer or provider of output services is liable to pay an amount equal to the credit availed on the said capital goods reduced by the percentage points in case where the capital goods are removed after use; in terms of Rule (5A)(b) of CENVAT Credit Rules, if the capital goods cleared as waste/scrap the manufacturer is liable to pay an amount equal to duty on the transaction value. He submits that both the provisions are not applicable in the instant case as there is a fundamental difference between the two terms "used" and "scrap"; used means something which has endured used before, however, it can be still us ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... di Samiti, Baran v. Commissioner, ioner, CGST & C. Ex. Div., Udaipur, 2022 (58) G.S.T.L. CGST & C. Ex. Div., Udaipur, 2022 (58) G.S.T.L. 351 (Tri. 351 (Tri. -- Del.)Del.) M/s Deepak Builders v. Commissioner of Central M/s Deepak Builders v. Commissioner of Central Excise and Service Tax, Ludhiana (ViceExcise and Service Tax, Ludhiana (Vice--Versa), Versa), Final Order No. 60690Final Order No. 60690--60691/2024 dated 60691/2024 dated 20.12.2024 (Tri.20.12.2024 (Tri.--Chan.)Chan.) M/s. Brainpower HR ManagemM/s. Brainpower HR Management Pvt. Ltd. v. CCE ent Pvt. Ltd. v. CCE & CGST, Agra, Final Order No. 70689/2024 dated & CGST, Agra, Final Order No. 70689/2024 dated 22.10.2024 (Tri.22.10.2024 (Tri.--All.)All.) Delhi Airport Metro Express ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ds declared as scrap have been sold by the appellant to companies engaged in scrap management which have a certificate issued to them by the Principal Environment Commissioner, Rajasthan State Pollution Control Board, for procurement and recycling of scrap under the Hazardous Waste Management Rules. Further, the invoices through which these goods were sold to these companies also describe the good as scrap only. The copies of these certificates and sale invoices were brought on record by the appellant but the Additional Director failed to take notice of the said evidence and observed that no evidence of the goods being "scrap' was brought on record by the appellant. 35. This finding of the Additional Director that the goods cannot be cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m in dictionaries. For this purpose reliance can be placed on the decision of the Supreme Court in MSCO Pvt. Ltd., wherein the following observations have been made: "The expression 'industry' has many meanings. It means 'skill', 'ingenuity', 'dexterity', 'diligence', 'systematic work or labour', 'habitual employment in the productive arts', 'manufacturing establishment' etc., But while construing a word which occurs in a statute or a statutory instrument in the absence of any definition in that very document it must be given the same meaning which it receives in ordinary parlance or understood in the sense in which people conversant with the subject matter of the statute or st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d as scrap even before the usual shelf life of such claims and without even breaking the items. It may be true that a particular item was declared a scrap before the usual prescribed shelf life of that item, but that would not mean, in view of the detailed procedure undertaken by the appellant for declaring a particular item as scrap, that a particular item cannot be considered as scrap. What has actually to be determined is whether that item can be treated as scrap and it is not material whether the particular item still has a shelf life. The items which were declared as scrap were sold to companies specializing in scrap management and these companies have also been granted a certificate for procurement and recycling of scrap under the Haz ..... X X X X Extracts X X X X X X X X Extracts X X X X
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