2019 (2) TMI 566

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....a: After hearing both the sides, I find that the appellants are engaged in the manufacture of sponge iron. Coal is one of the inputs in the manufacture of the said final product. Coal became dutiable with effect from 1.3.2011 and prior to that there was no duty paid on the coal received by the assessee. However, with effect from 1.3.2011, the coal procured by the appellant was duty paid and the ....

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....them proposing denial of Cenvat credit to the tune of Rs. 2,69,009/-. The said proceedings culminated into the impugned orders passed by the authorities below. 4. The appellants had taken a categorical stand that the shale stones sold by them in the year 2012-2014, to which period the present demand pertains, had emerged out of the coal procured by them prior to 1.3.2011, in respect of which no c....

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....ce of the inputs, if waste is generated during further processes, no reversal is required to be done in terms of Rule 3(5). The shale stones have emerged during the course of manufacture of the appellant's final product which stands initiated with the issuance of the coal. This legal issue stands clarified by the Board vide Circular No. 1029/17/2016-CX. dated 10.5.2016. Though, the same is in the....

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.... that of imported brass scrap. Accordingly, clearance of foreign material such as iron, steel, rubber, plastic, dust etc. cannot be treated as clearance of inputs as such. It may be noted that Circular No. 62/2001-Cus. Dated 12.11.2001 [2001 (134) ELT (T39)] does not apply to the issue at hand as the facts at hand are different. 4. In view of above, it is clarified that the clearance of segregate....