2019 (9) TMI 1375

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....f the Cenvat Credit Rules, 2004, when the Company has not availed any Cenvat credit on inputs used in manufacture of RPG and credit attributable to input services has already been reversed. 2. Facts of the case in brief are that the company is engaged in the manufacture of Biaxially Oriented Polypropylene Films (in short 'BOPP Films'). The primary raw materials required for manufacture thereof is PP Granules. During the course of manufacture of BOPP Films, waste and scrap is generated. The major quantity of waste generated is captively consumed by the company in the manufacture of Reprocessed Granules/RPG, which is exempt from excise duty under Notification No.6/2003-CE dated 01.03.2003 as amended vide Notification No.04/2006-CE dated 01.0....

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....ste and scrap captively consumed in the manufacture of exempted RPG, treating it as a final product, there remains no further requirement of payment of 10% / 6% / 5% duty on the exempted RPG. It is submitted that once the duty is discharged in the intermediate stage and no further credit is availed in the subsequent stages of manufacture of RPG, there is no application of Rule 6 of the CCR. Reliance in this regard is placed on the judgment in the case of Texmo Industries Vs. CCE, Coimbatore reported in 2007 (208) ELT 338 (LB). Further reliance is also placed on the judgment in the case of Tata Chemicals Ltd. vs. CCE, Haldia [2007 (214) ELT 95] wherein while following the aforesaid decision, the Tribunal directed for the payment of duty on t....

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....he period in dispute. 6. Heard both sides and perused the appeal records. 7. I find that taking into account the aforesaid provisions of Rule 6, the company submits that in the present case, since it has undisputedly and admittedly paid duty on the intermediate waste/scrap emerging during the manufacture of the BOPP film, there is no question of application of Rule 6. In other words, PP granules are used in the manufacture of dutiable goods i.e. BOPP film and waste/scrap. Since both the goods manufactured using PP granules are dutiable in nature, Rule 6 of the Rules is not applicable in the case of the company. Hence, the question of demanding duty to the extent of 10% / 6% / 5% of the value exempted RPG will not arise. 8. I also find th....