2019 (2) TMI 9

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.... Sai Prashanth, Advocate for the Appellant Ms. T. Usha Devi, DC (AR) for the Respondent ORDER Per Bench : The appellants are engaged in the manufacture of Dry Cell Batteries falling under Chapter Heading 85061000. During the course of manufacture, waste and scrap of batteries arise. 2.1 The Department took the view that even though for such waste and scrap the relevant Chapter Heading 854....

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.... of the value of waste and scrap of batteries was dropped; (ii) However, the CENVAT Credit attributable to the inputs involved in such non-excisable goods have to be reversed by the appellant; (iii) Penalty imposed under Rule 15(1) is set aside. 3. Today when the matter came up for hearing, Ld. Advocate Shri. R. Sai Prashanth appearing on behalf of the appellant submits that the appellants are ....

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....aste and scrap of batteries as excisable goods. Once that proposition has been shot down by the Commissioner (Appeals) in paragraph 16(i) of the impugned Order, the further Order at paragraph 16(ii) directing the appellant to pay up the CENVAT Credit attributable to inputs involved in such non- excisable goods is definitely beyond the scope of the Show Cause Notice. On this very point, the impugne....

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.... not used in the manufacture. The C.B.E. & C. have issued circular in the past which is not withdrawn. He has further argued that even today C.B.E. & C. Manual on Supplementary Instruction under Chapter 5 at Para 3.7 clarifies as follows : "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 ....