https://www.taxtmi.com/caselaws?id=797875 Rule 3(5A) of the CENVAT Credit Rules, 2004 requires payment of an amount equal to duty leviable on the transaction value when capital goods on which CENVAT credit was availed are cleared as waste and scrap. This obligation arises from the availment of credit and applies independently of whether the scrap was manufactured by the assessee or is separately classifiable under a tariff entry. The same principle applies under the materially similar predecessor provision. Consequently, clearance of such waste and scrap attracts duty based on transaction value. en-us Mon, 03 Aug 2026 00:00:00 +0530 Sat, 29 Aug 2026 14:35:43 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=797875 Rule 3(5A) of the CENVAT Credit Rules, 2004 requires payment of an amount equal to duty leviable on the transaction value when capital goods on which CENVAT credit was availed are cleared as waste and scrap. This obligation arises from the availment of credit and applies independently of whether the scrap was manufactured by the assessee or is separately classifiable under a tariff entry. The same principle applies under the materially similar predecessor provision. Consequently, clearance of such waste and scrap attracts duty based on transaction value. Case-Laws Central Excise Mon, 03 Aug 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=797875