2018 (5) TMI 392

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....mport and availed credit of the duty paid on such Aluminium scrap procured locally and the CVD paid on imported scrap. On scrutiny of returns, it was noticed that for the period January 2009 to March 2009 and December 2009 to January 2010 appellants have cleared cenvat availed imported aluminium scrap, 'as such' under Rule 3 (5) of CCR 2004. After reversing the credit availed on such goods, these were cleared 'as such' to dealers. On perusal of cenvat account and the connected invoices, it was noticed that the dealers resold the Aluminium scrap on which credit was availed by them to M/s.VAPL (appellant) during the period from August 2009 to February 2010. Appellants availed cenvat credit on the Aluminium scrap resold to them by the dealers.....

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.... Central Excise Rules, 2002 read with Rule 9 of CCR 2004. When the duty was reversed by the appellant at the time of removals and when the goods are again resold to the appellants on the strength of dealer's invoice, the department cannot deny the credit. He referred to Rule 8 which lays down the manner of payment. Explanation appended to the said rule states that the expression 'duty' or 'duty of excise' shall also include the amount payable in terms of the Cenvat Credit Rules, 2004; He argued that the credit has been rightly availed by the appellant and therefore the demand raised cannot sustain. 3. Ld. A.R Shri A. Cletus supported the impugned order. He submitted that when appellant has availed credit on the inputs, he steps into the sh....