2015 (12) TMI 1583 - AT - Central Excise

Denial of CENVAT credit on cement - cement used for stabilization of hazardous waste namely jerositewaste product emerged during the course of manufacture of non-ferrous metal - Held that - the issue has already been settled by the appellant s own case M/s Hindustan Zinc Ltd Versus Commissioner of Central Excise And Service Tax, Jaipur 2015 (10) TMI 1558 - CESTAT NEW DELHI relied upon where it was held that appellant has used cement for stabilization of hazardous waste jarosite as toxic effluent at secured land fill which is part and parcel of their manufacturing activity. In these terms, we hold that appellant has correctly taken cenvat credit. Denial of CENVAT credit not justified - appeal allowed - decided in favor of appellant.

Summary

Issues: Denial of cenvat credit on cement used for stabilization of hazardous waste during the manufacture of non-ferrous metal.

Analysis:
The judgment addresses the denial of cenvat credit on cement used for stabilizing hazardous waste, specifically jarosite, a toxic effluent arising during the manufacturing process of non-ferrous metal. The Tribunal refers to a previous decision in the appellant's case, where it was established that using cement for hazardous waste stabilization, integral to the manufacturing process, qualifies for cenvat credit. The Tribunal held that the appellant correctly availed cenvat credit and was not obligated to reverse it. Consequently, the impugned order denying the benefit was set aside, and the appeals were allowed with any necessary consequential relief.

The Tribunal emphasized that the appellant's use of cement for stabilizing hazardous waste was an essential part of their manufacturing activity, justifying the availment of cenvat credit. The judgment highlights the settled legal position that supports the appellant's entitlement to the cenvat benefit in such circumstances. The impugned order denying the cenvat benefit was deemed to lack merit in light of this established legal principle. As a result, the order was set aside, and the appeal was decided in favor of the appellant.

In conclusion, the judgment clarifies that utilizing cement for stabilizing hazardous waste, like jarosite, as part of the manufacturing process of non-ferrous metal qualifies for cenvat credit. The Tribunal's decision underscores the importance of recognizing such activities as integral to manufacturing, thereby upholding the appellant's right to avail cenvat credit in this context.