TaxTMI 
TaxTMI 
2015 (10) TMI 1362
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....r of chocolates and coco products. During the course of the manufacturing final product certain floor spillage and sweeping arises which assessee is destroying. Revenue is of the view that on these sweepings the assessee is not entitled to take Cenvat Credit. Therefore, proceedings for the period April 2006 August 2011 were initiated against the assesee to deny Cenvat Credit on the inputs contained in these floor sweepings. The matter was adjudicated, Cenvat Credit was denied consequent demand on duty was confirmed along with interest and equivalent amount of penalty was imposed. On appeal before the Ld. Commissioner (A) the Ld. Commissioner (A) allowed the Cenvat Credit for the period April 2006 September 2007 on th....
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....e the contention of the Ld. Counsel and submits that as these goods are not dutiable, therefore, Cenvat Credit is not entitled to the assessee. It is further argued that as they are not entitled for remission claim under Rule 21 of the Central Excise Rules 2002 and these goods are not dutiable, therefore, Cenvat Credi is not available. To support this contention the Ld. ARs relied on the decision on the case of Gujarat Narmada Fertilizers Co. Ltd. Vs. CCE-2009 (240) ELT 661 (SC) and Virat Crane Agri-Tech Ltd. Vs. CCE Guntur-2011 (271) ELT 510 (AP) which has been affirmed by the Hon ble High Court of Rajasthan reported in 2013 (292) ELT A99 (Supreme Court). It is further submitted that as per Rule 3(5)(c) of the Cenvat Credit Rules 2004 the ....
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.... be interpreted strictly. The Commissioner can arrive at his satisfaction only when necessary evidence is produced by the assessee. Admittedly the analytical report covers 566 drums and there was no such analytical report for the other drums including 198 drums. It appears the adjudicating as well as appellate Commissioners left off the appellant in respect of 737 drums for which intimation was given. In so far as 198 drums were concerned, the appellate Commissioner as well as CESTAT came to the correct conclusion after appreciating the factual background. This appeal, therefore, does not involve any substantial question of law." 8. I have gone through these decisions and found that in this case the appellant has failed to satisfy the co....
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....ing upon clause (5C) to Rule 3 of the Cenvat Credit Rules, 2004 submitted that the assessee is bound to reverse the credit taken on the inputs. Firstly, it is to be noted that the said clause (5C) was inserted to Rule 3 of the Cenvat Credit Rules, 2004, w.e.f. 07.09.2007. In fact, the High Court of Gujarat in the case of CCE Vs. Biopac India Corporation Ltd. has taken a similar view and held that goods destroyed in fire after being used for many years cannot be said as not used in the manufacture of final and finished product and the assessee need not reverse the Credit availed on inputs used in finished or semi-finished goods. 11. We are fully in agreement with the view taken by the Gujarat High Court. Further, clause (5C) to Rule 3 of ....