2014 (1) TMI 1419

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.... for the Respondent. ORDER Appellant manufacture sanitaryware. For manufacture of sanitaryware, they make Plaster of Paris (POP) moulds. For manufacture of POP moulds they use propane gas and input services in respect of which Cenvat credit has been taken. After use, the POP moulds are sold as waste. The Department was of the view of that since in respect of manufacture of POP moulds, Cenvat cre....

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....h stay application has been filed. 2. Heard both the sides in respect of stay application. 3. Shri Alok Kothari, Chartered Accountant, ld. Counsel for the appellant, pleaded that Rule 3(5A) of the Cenvat Credit Rules, 2004 is not applicable, that this rule is applicable only where Cenvat credit taken capital goods have been cleared after use, as scrap, while in this case, neither any d....

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.... the duty leviable on transaction value". The capital goods mentioned in the sub-rule are Cenvat credit availed capital goods. Prima facie, sub-rule (5A) of Rule 3 of Cenvat Credit Rules applies in those cases where Cenvat credit availed capital goods after use in the factory are cleared as scrap and waste and only in such situation an amount equal to the duty on transaction value of such scrapped....