TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
of 
of 
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of of 
All Case Laws
of of All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of <h1>Tribunal allows Modvat credit on duty paid for aluminium waste & scrap used in manufacturing.</h1> The Tribunal affirmed that the assessee is entitled to claim Modvat credit on duty paid for inputs used in manufacturing aluminium waste and scrap, even ... Cenvat/Modvat Issues:1. Entitlement to Modvat credit on duty paid on aluminium sheets forming part of waste and scrap.2. Classification of aluminium waste and scrap as a final product.3. Eligibility for Modvat credit on inputs used in manufacturing aluminium waste and scrap.Analysis:1. The appeal contested the Commissioner (Appeals) finding that the assessee is entitled to Modvat credit on the duty paid on the portion of aluminium sheets forming part of the aluminium waste and scrap. The appellant argued that since the final product, bus body, is chargeable to nil rate of duty, the assessee should not be allowed to claim credit on the duty paid on the input, aluminium sheets.2. The respondent-assessee, engaged in manufacturing bus bodies using aluminium sheets, contended that the aluminium scrap, even if generated as waste during the manufacturing process, constitutes a final product under Rule 57A with Notification No. 5/94-N.T. The Commissioner (Appeals) accepted this argument, stating that the aluminium waste and scrap are distinct excisable commodities falling under Chapter sub-heading No. 7602.00 of the Central Excise Tariff Act, 1985. As per Rule 57C, no credit is allowed if the final product is exempt from excise duty. However, the Modvat credit is permitted on the duty paid on the portion of aluminium sheets forming part of the final product 'Aluminium waste and scrap' cleared on payment of duty.3. The Tribunal concurred with the Commissioner (Appeals) that the aluminium waste and scrap are indeed excisable products, and the Modvat credit on the duty paid on the portion of aluminium sheets forming part of the waste and scrap is permissible. The Revenue failed to establish that the waste and scrap are not excisable products, leading to the dismissal of the appeal. The judgment upheld the decision that the assessee is entitled to claim Modvat credit on the duty paid on the inputs used in manufacturing the aluminium waste and scrap, even if generated as a by-product or waste during the production of another excisable commodity.
TaxTMI 
TaxTMI 
