2016 (12) TMI 980

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....sustained. 2. The appellant has been represented by the ld. Advocate Shri Shashwat and Revenue has been represented b ld. AR Shri K. Poddar. 3. The ld. Advocate based on appeal memorandum, inter alia submits as follows : (i) Waste generated is in the category of floor waste / floor spillage, which cannot be recycled or reused, and of the rejected packing material; all these are required to be destroyed. (ii) The above waste is destroyed in an incineration on daily basis. (iii) This waste cannot at all be considered as finished goods and is not fit for consumption or marketing. (iv) Cenvat credit gone into the raw material of the waste cannot be denied. (v) In support, the following case law....

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....l against the judgement was dismissed by the Hon'ble Supreme Court. The facts are also covered by the CESTAT decision in the case of J.B. Mangharam (supra) and Larger Bench decision of CESTAT in the case of Grasim Industries (supra) and also covered by Hon'ble Madras High Court decision in the case of Joy Foam Pvt. Ltd. (supra) 6.1 The Hon'ble Karnataka High Court in the case of Geltech Ltd., (supra), inter alia observes as under: "3. .............. .............. "The learned counsel for the revenue relied on Rule 3 of Cenvat Credit Rules, 2004 and contended that the assessee was under an obligation to reserve the Cenvat credit in respect of Gelatin waste as it falls under Rule 3(5). Reliance is placed on Rule....

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....emission of duty is granted on such goods. Since the inputs are considered to be put to intended use in the manufacture of finished products, it is deemed to have been consumed in the process of manufacture and since the goods are lost or destroyed due to unavoidable accident, the claim of reversal of credit cannot be countenanced, more so, when the said provision does not provide for reversal of credit, as has been observed by the Tribunal, which we approve." 6.3 The Hon'ble Madras High Court also in the case of Fenner India Ltd. (supra) inter alia observes as under : "9. Coming to the facts of this case, it is not in dispute that the inputs on which the Cenvat credit was availed were destroyed when the work was in progress. On....