2017 (11) TMI 2034 - AT - Central Excise

Reversal of CENVAT Credit - sludge/waste under the provisions of Rule 6(3) of CCR, 2004, inevitably arising during manufacture of paper and paperboard - HELD THAT - The issue herein is squarely covered in favour of the appellant by ruling of the Coordinate Bench of this Tribunal in M/S. MAGNUM VENTURES VERSUS CCE., GHAZIABAD 2014 (4) TMI 416 - CESTAT NEW DELHI where it was held that The sub-heading 47 07 90 00 specifies unsorted waste and scrap. In as much as the entry relates to waste and scrap of paper or paper board and not to sludge and pulper waste, the same cannot be held to be covered by the said entry. Appeal allowed.

Summary

The Appellate Tribunal CESTAT ALLAHABAD ruled in favor of the appellant, a manufacturer of paper and paperboard, stating that they are not required to reverse an amount of 8%/10% of the value of sludge/waste under Rule 6(3) of CCR, 2004. The decision was based on a previous ruling in Magnum Ventures vs. CCE 2014 (303) ELT 226. The impugned order was set aside, and the appellant is entitled to consequential benefits.