2010 (4) TMI 563 - AT - Central Excise

Cenvat Waste clearance - The respondents herein received angles channels and other re-rolled products and used the same in further manufacture of final products namely transmission towers after availing credit on the inputs. It is the case of the Department that what was cleared was inputs as such and that therefore the assessees should have reversed the credit originally taken on the inputs when they were received by the assessees into their factory. Held that inputs were not cleared as such. They were end bits or off cuts of iron and steel and assessee was not required to reverse credit taken on such inputs.

Summary

The Appellate Tribunal CESTAT, Chennai ruled that remnants of inputs cleared by the respondents for further manufacture should not be treated as clearance of inputs as such. The tribunal agreed with the assessees that the cleared items were end-bits or off-cuts of iron and steel, not requiring reversal of originally availed credit. The penalty imposed was reduced to Rs. 15,000 and the appeal by the Revenue was dismissed.