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of <h1>Tribunal Upholds Duty on Scrap Goods, Rejects Time-Barred Claim</h1> <h3>M/s. Shree Khedut Sahakari Khand Udyog Mandli Limited and M/s. Shree Chalthan Vibhag Khand Udyog Sahakari Mandli Limited Versus Commissioner of Central Excise & ST, Surat</h3> M/s. Shree Khedut Sahakari Khand Udyog Mandli Limited and M/s. Shree Chalthan Vibhag Khand Udyog Sahakari Mandli Limited Versus Commissioner of Central ... Issues involved:Whether the appellants are liable to pay duty on the transaction value of waste and scrap of capital goods on which Cenvat credit was availed for the period 2005-06 to 2006-07.Analysis:The appellants contested the demand raised for the mentioned period, arguing that they were unaware of Rule 3(5A) of the Cenvat Credit Rules, 2004, inserted on 16.05.2005, and hence, there was no suppression of facts. They relied on a previous tribunal judgment where a similar demand was dropped. The appellant claimed a bonafide belief that no duty was payable on waste and scraps of capital goods due to the previous ruling. However, the Revenue reiterated the findings of the impugned order.Upon review, the Tribunal noted that post the insertion of Rule 3(5A), the assessee is obligated to pay duty on waste and scraps of capital goods with Cenvat credit. The Tribunal dismissed the appellant's argument of the demand being time-barred, emphasizing that after the provision's insertion, there was clarity on the duty liability. The Tribunal distinguished the previous case cited by the appellant, highlighting that in the current scenario, Cenvat credit was availed on the capital goods, unlike the previous case where it was not. Consequently, the Tribunal upheld the impugned orders, dismissing the appeals.In conclusion, the Tribunal ruled that the appellants were indeed liable to pay duty on the waste and scrap of capital goods for which Cenvat credit was availed, rejecting the appellant's contention of the demand being time-barred based on a previous tribunal judgment. The decision emphasized the obligation post the insertion of Rule 3(5A) and clarified the distinction between the current case and the precedent cited by the appellant.
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