TaxTMI 
TaxTMI 
2019 (8) TMI 420
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....ils etc. and are availing the benefit of CENVAT Credit Rules, 2004. During the course of verification of the records by the Department, it was observed that the appellant in addition to the above goods manufactured, are also manufacturing and clearing Zinc Dross/Cyclone/Ash classifying the same under CTH 79020090 of the First Schedule to the Central Excise Tariff Act, 1985. These goods, which are non-excisable goods and are cleared for a consideration from the factory need to be treated like exempted goods for the purpose of reversal of credit on input and input services, in terms of Rule 6 of the CENVAT Credit Rules, 2004. Thus, it was observed that the appellant had not paid the amount of 6% of the exempted goods as per Rule 6(3) of the C....
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....llant and not to the waste. Waste products are non-excisable as the test of "manufacture" in terms of Section 2(f) of the Central Excise Act, 1944 is not satisfied. He further submitted that this issue is no more res integra and has been settled in favour of the assessee by various decisions of the Tribunal and the High Court. In support of this submission, he relied upon the following decisions: * APL Apollo Tubes Ltd. Vs CCE Salem Final Order No. 40925/2019. * CCE Meertu Vs Bajaj Hindustan Sugar Ltd. Final Order No. 70955-70958/2019. * CCE Meerut-I Vs Bajaj Hindustan Sugar Ltd. Final Order No. 70916/2019. * Triveni Engineering & Industries Ltd. Vs CCE, Noida Final Order No. 71157/2018. * Menon & Menon Ltd. Vs CCE, Kolhapur in Ap....
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....red as exempted goods, there is no corresponding amendment made in sub-rule(1) of Rule 6 so that the goods that emerged out of process of manufacture falling in clause (1) are also to be considered as exempted goods. As per settled decisions, the goods which are not consciously manufactured by the appellants and which emerged in the process of manufacture cannot be considered as goods manufactured by the appellants. Thus, when the zinc scrap which is a waste arising out of process of manufacture of finished goods, is not goods manufactured by the appellant, the same cannot be considered as exempted goods manufactured by them. The Tribunal in the case of M/s. Bajaj Hindustan Sugar Ltd. vide Final Order stated supra had occasion to consider t....
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.... Therefore proceedings were initiated against the respondent for recovery of around Rs. 44.00 Lakhs. On perusal of record I note that the issue is covered by precedent decision in respondent's own case in respect of their another unit through Final Order No.70801/2019 dated 18.04.2019. It was held in the said Final Order that Press Mud and Bagasse are not arising out of manufacturing activity and the same are agricultural waste and residue and therefore since the said Final Order is applicable in the present case I uphold the impugned order and reject the appeal filed by Revenue." Similar decision has been taken in the other final orders relied upon by the Ld. Counsel for the appellant. Respectfully following the decision of the Division ....