2020 (2) TMI 1014

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....able). They are also the provider of taxable as well as non-taxable services. Department during the course of audit of the Appellant record observed that the appellant in addition to clearing the tires/tubes (excisable goods). They are also clearing various kinds of non-excisable goods such as plastic scrap, used empty jumbo bags, sweeping garbage, MS Iron, empty drums, MS scrap, etc. This clearance has been noticed from March, 2015 to September, 2016. 2. They were also observed to have been availing CENVAT Credit of excise duty paid on the inputs as well as Service Tax paid on input services, however, without following Rule 6 of CENVAT Credit Rules, 2004(CCR 2004). Accordingly, a show cause notice No. 1453 dated 08.04.2017 was served upo....

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....t aside. Ld. Counsel has laid emphasis upon Honda Motorcycle (supra) having identical facts to have been decided in favour of the assessee by this Tribunal. In addition the various other adjudications interpreting Rule 6 CCR has also been impressed upon that is : 1. M/s Kichha Sugar Company Ltd. Vs. CCE, 2018 (10) TMI 1151-CESTAT, New Delhi. 2. Honda Motorcycle and Scooter India Pvt. Ltd. Vs. CCE, Alwar, 2019 (4) TMI 743-CESTAT, New Delhi 3. Union of India Vs. DSCL Sugar Limited., 2015 (10) TMI 566-Supreme Court. 4. Devi Iron and Power (P) Ltd. Vs. Commissioner of Customs, CGST and Central Excise, Raipur, 2019 (5) TMI 1095-CESTAT, New Delhi 5. Sahyadri SSK Limited Vs. CGST Kohlapur, 2019 (10) TMI 1100-CESTAT Mumbai. Order-u....

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....erms of the provisions of sub-rule (2) or sub-rule (3), as the case may be : : Provided that the CENVAT credit on inputs shall not be denied to job worker referred to in rule 12AA of the Central Excise Rules, 2002, on the ground that the said inputs are used in the manufacture of goods cleared without payment of duty under the provisions of that rule. Explanation 1.- For the purposes of this rule, exempted goods or final products as defined in clauses (d) and (h) of rule 2 shall include nonexcisable goods cleared for a consideration from the factory. Explanation 2.- Value of non-excisable goods for the purposes of this rule, shall be the invoice value and where such invoice value is not available, such value shall be determined by ....

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....se of West Coast Industries Gases Ltd. Vs. CCE reported as 1999(112) ELT 12 wherein it was held that no duty could be demanded on the containers used for packing of input on which credit has been taken when cleared from the factory of the manufacturer availing credit as these containers could not be treated as scrap or waste arising out of the manufacturing process. The issue has recently been dealt with by Bangalore Bench of this Tribunal in the case of Jamipol Ltd. Vs. Commissioner of Central Tax, Belagavi Commissionerate reported as 2019 (12) TMI 550 - CESTAT Bangalore wherein it was held that empty drums as have been cleared against consideration do not require reversal of credit for the simple reason that the drums are not the manufact....

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....pellant that Rule 6 requires reversal of credit only subject to satisfaction of twin conditions of manufacture and exempted goods. It is seen from the statutory provision that the Explanation 1, inserted with effect from March 1, 2015, includes 'non-excisable goods' in the definition of term 'exempted goods' in the following words: "Explanation 1.- 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 a consideration from the factory". In this context, it is noteworthy that aluminium dross has been held to be non-manufactured in Hindalco Industries Limited Vs. UOI, 2015 ELT 10 (Bom.). Further, much of the impugned scrap was not even involv....