2021 (4) TMI 122

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....e etc. They were also availing the benefit of Cenvat Credit on inputs, input services and capital goods under Cenvat Credit Rules, 2004. During the course of audit for the period 2016-17, Department noticed that appellant had cleared empty polythene bags of raw-material, empty drum of power oil worth Rs. 33,62,307/- in the name of waste sales without payment of duty, despite that the goods so cleared were non-excisable. Relying upon the Notification No.06/2015 dated 01.03.2015 which says that any non-excisable goods cleared from the factory will be treated as exempted goods and Cenvat Credit will be reversed on the same as per Rule 6 (3) of Cenvat Credit Rules. Accordingly, vide Show Cause Notice No.1729 dated 18.07.2018 the appellant was r....

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....le goods which have been cleared for consideration, as such, there is no infirmity in the Order under challenge. Appeal is prayed to be dismissed. 4. After hearing the Departmental Representative and perusing the grounds of appeal in the Appeal Memo as well as the Order dated 16.09.2019 as has been mailed to the Tribunal, I observe and hold as follows:- The Show Cause Notice as well as the orders of the adjudicating authority below have stated that provision of Rule 6 (3) of Cenvat Credit Rules, 2004 are attracted and accordingly the appellant has been asked to pay an amount of 6% of the value of empty drums and bags cleared from the factory. Accordingly, the moot issue to adjudicate is as to whether Rule 6(3) of CCR, 2004 is applicab....

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....ule w.e.f. 01.03.2015 by virtue of Notification 06/2015 and the following explanation has been inserted:- " (1) The CENVAT credit shall not be allowed on such quantity of inputs in or in relation to the manufacture of exempted goods or for provision of exempted services, or input services used in or in relation to the manufacture of exempted goods and their clearance upto the place of removal for provision of exempted service except in the circumstances mentioned in sub-rule (2) 8.1 This rule was amended w.e.f. 01.03.2015 by inserting: Explanation 1: - For the purpose of this rule, exempted goods or final products as defined in clause (d) and (h)of Rule 2 shall include non-excisable goods cleared for a consideration from t....