2018 (3) TMI 323

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....ar, Joint Commissioner (AR) - for the Respondent ORDER Appellant is a manufacturer of aseptic packing for various overseas customers and had used imported raw materials for final products on which CENVAT credit of additional duty of Rs. 5,24,735/- had been taken, the cost of those materials were recovered from customers by raising debit notes amounting to Rs. 3,21,587/- in foreign currency. ....

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....e impugned order has erred in disallowing of the credit as the trial run was a necessary stage in the run up to commencement of production and that just as generation of waste product arising in the process of manufacture is no ground for refusal of admissibility of credit so also the production in a trial run cannot be denied eligibility for CENVAT credit. Reliance has been placed on the decision....

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....ed in the manufacturing process. The reality of manufacture makes trial run a necessity and there is no provision for deniability of credit of inputs used for production process in CENVAT Credit Rules, 2004. The dutiability, or otherwise, of the waste product does not, in any way, attract restrictions on availment of CENVAT credit of the inputs used therein. The recovery of cost of inputs from the....