2019 (2) TMI 403

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....or the Respondent. ORDER Per: P.V. Subba Rao. 1. This appeal is directed against Order-in-Appeal No. HYD-EXCUS-SCAP2- 0247-17-18 dated 09.02.2018. 2. The appellant herein is a manufacturer of cigarettes and the dispute is regarding the CENVAT credit availed on BOPP film and paper which are used for packing the cigarettes. Some part of the BOPP film and the paper become waste and are cl....

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....n or in relation to the manufacture of exempted goods and their clearance up to the place of removal. Explanation (1) has been added to this Rule as follows. "For the purpose of this Rule, exempted goods or final products as defined in clauses 'd' and 'h' of Rule 2 shall include non-excisable goods cleared for consideration from the factory." 4. The department's contention is that in view of....

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....y are not manufacturing or producing non-excisable products in the case but were only clearing the waste which has risen in the course of manufacture of excisable products. Therefore, explanation (1) to Rule 6 (1) does not apply to their case as has been held by the Hon'ble Tribunal in the aforesaid case laws. 6. Learned departmental representative reiterates the findings of the lower authoriti....

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....sidered the arguments on the both sides. The short point to be decided is whether in view of the explanation (1) to Rule 6 (1) of the CENVAT Credit Rules, 2004, CENVAT credit needs to be reversed when waste that arises during the manufacture is cleared for a consideration by the assesee. This issue is no longer res integra and it has been held in the cases of Menon & Menon (supra) and M/s Shivratn....