https://www.taxtmi.com/caselaws?id=355977 Rule 6(1) of the Cenvat Credit Rules, 2004 applies only where an assessee manufactures exempted goods and seeks Cenvat credit connected to those goods. Bags and barrels used as containers for raw material, then sold after use, were not treated as manufactured goods arising from the assessee's manufacturing activity. On that basis, Explanation 1 also did not apply, because waste or scrap not arising from manufacture falls outside the rule's ambit. The demand and penalty were therefore set aside, and the appeal succeeded. en-us Wed, 07 Feb 2018 00:00:00 +0530 Thu, 22 Feb 2018 06:40:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=355977 Rule 6(1) of the Cenvat Credit Rules, 2004 applies only where an assessee manufactures exempted goods and seeks Cenvat credit connected to those goods. Bags and barrels used as containers for raw material, then sold after use, were not treated as manufactured goods arising from the assessee's manufacturing activity. On that basis, Explanation 1 also did not apply, because waste or scrap not arising from manufacture falls outside the rule's ambit. The demand and penalty were therefore set aside, and the appeal succeeded. Case-Laws Central Excise Wed, 07 Feb 2018 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=355977