TaxTMI 
TaxTMI 
TaxTMI 
2017 (2) TMI 243
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....eriod April 2010 to November 2010. Alleging that the CENVAT credit availed on such wire scrap, to the extent of generation of copper, which were cleared later on payment of duty are not admissible, two demand notices were issued to the Respondent-assessee for recovery of the credit of Rs. 43,65,659/- and Rs. 13,30,173/-,respectively. On adjudication, the demands were confirmed and penalty of equal amount imposed. Aggrieved by the said order, the Respondent-assessee filed an appeal before the Commissioner (Appeals), who , in turn, partly allowed their appeal to the extent of setting aside the demand of Rs. 43,65,659/- and rejected their appeal involving an amount of Rs. 13,30,173/- observing that the appellant did not file appeal arising out....
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....sent appeals is whether the CENVAT credit availed on plastic wire and scrap, when a portion of the said scrap was sold later after retrieving the copper from it on payment of excise duty, which was twice the amount of credit on whole scrap. It is not in dispute that out of the said waste and scrap, approximately 55% was retrieved manually which does not result into manufacture , but the copper portion of the same was cleared on payment of duty. Ld. Commissioner (Appeals) recorded his finding on the issue as follows: 12. A step further Hon'ble Gujarat High Court in the case of Creative Enterprises 2009 (235) E.L.T. 785 (GUJ.) also held that once the department has accepted the duty on the final product though not involving process of manuf....
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....t the tenets of equity and justice. The department having accepted the excise duty on the final product cannot be permitted to deny Cenvat credit on the inputs used for the manufacture of the final product on such a technical plea. If such an argument is allowed to sustain it would negate the entire object of the Cenvat credit scheme which has been put in place with a view to protect the assessee from double taxation. We are unable to accept the plea of the appellant." 14. The following case laws also lay down that when the process is held to be not manufacture, then the duty paid on the final product should be treated as reversal of the ineligible credit on the inputs and the assessee cannot be called upon to pay the credit again:- (i)....