2017 (12) TMI 85

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....he appellants argued that reversal of cenvat credit has been sought invoking Rule 6 of the Cenvat Credit Rules in respect of furnace slag cleared by them. He pointed out that all these products are waste and refuse of the process of manufacture of finished goods. Ld. Counsel for the appellants relied on the decision of the Tribunal in the case of Shivratna Udyog Ltd. & Ors. vide Order no.A/89563-8....

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....ons made by both sides. The fact of the case is that the appellants' goods in dispute are bagasse, press-mud, boiler ash and compost which are either waste or by-products. The issue is to be decided is whether in terms of Rule 6(3) an amount of 6% is required to be paid on the clearance of such waste/by product. The issue has been considered in various judgments. In the case of Rallies India Ltd. ....

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....le 6(3) is applicable in case of removal of non-dutiable waste or by product is settled in favour of the assessee. As regard the submissions made by Ld. ARs that after insertion of explanation in Rule 6(1), even in case of non-excisable goods, the reversal under Rule 6(3) is required. In this regard he referred to the Hon'ble Supreme Court judgment in the case of DSCL Sugar Ltd.(supra). Wherein th....

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....not be denied. As provided in para 3.7 of Chapter 5 of CBEC Circular which reads as under: "3.7 CENVAT credit is also admissible in respect of the amount of inputs contained in any of the waste, refuse or bye product, Similarly, CENVAT is not to be denied if the inputs are used in any intermediate of the final product even if such intermediate is exempt from payment of duty. The basic idea is th....