9911796707
TMI Blog2001 (12) TMI 693X X X X Extracts X X X X X X X X Extracts X X X X ..... al of the exemption notification. The appellants opted for availment of inputs-credit under Rule 57A and utilisation thereof for payment of duty on final products w.e.f. 9-3-94. Taking the benefit of the provisions of Rule 57H of the Central Excise Rules, 1944, the appellants filed Modvat declaration on 9-3-94 and took Modvat credit to the extent of Rs. 4,67,933.30 on the inputs used in the waste and scrap lying in stock as on 9-3-94. The Department, by show cause notice, proposed to disallow the credit, alleging that there was no provision for allowing benefit under Rule 57H on such waste and scrap. This proposal was contested by the party. In adjudication of the dispute, the Asstt. Commissioner disallowed the credit. The appeal preferred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the term final products under Rule 57AA(c) of the CENVAT Rules, 2000. Rule 57H expressly permitted manufacturer of final products to avail credit of duty on the inputs used in the manufacture of the final products lying in stock as on the date on which the manufacturer filed declaration under Rule 57G. In the instant case, the declaration was filed on 9-3-94 and this fact is not in dispute. The waste and scrap as final products were chargeable to duty on and after that date. There was no dispute of CR Sheets (inputs) having been used in the process of manufacture of the waste and scrap. Therefore, ld. Counsel submits, the appellants were entitled to take credit of the duty paid on the CR Sheets used in the manufacture of the waste and sc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l products. As a matter of fact, the waste and scrap in question were final products. The CBEC has also clarified that waste and scrap are final products for purposes of the relevant Cenvat Rules which have succeeded the Modvat Rules. The Counsel s contention that the Board s clarification is equally good for the expression final products occurring in the erstwhile Rule 57H of the Central Excise Rules, 1944 has not been contested before me, nor is it in dispute that the assessee has been clearing waste and scrap as final products on payment of duty since 9-3-94. The short question is whether the credit of duty paid on the inputs contained in the waste and scrap lying in stock as on 9-3-94 was admissible to the appellants for utilisat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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