2018 (3) TMI 2004 - AT - Central Excise

Reversal of CENVAT Credit - sludge/waste, inevitably arising during manufacture of paper and paperboard - provisions of Rule 6(3) of CCR, 2004 - HELD THAT - The issue herein is squarely covered in favour of the appellants 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 emergence of sludge and pulper waste during the course of manufacture of paper or paper board cannot be held to the result of any manufacturing activity. Reversal of credit not required - appeal allowed.

Summary

The judgment by the Appellate Tribunal CESTAT ALLAHABAD addressed whether a manufacturer of paper and paperboard must reverse a percentage of the value of sludge/waste under Rule 6(3) of CCR, 2004. The tribunal ruled in favor of the appellants based on a precedent set in Magnum Ventures vs. CCE 2014 (303) ELT 226, allowing the appeals and setting aside the impugned orders.