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TMI Blog2010 (7) TMI 398X X X X Extracts X X X X X X X X Extracts X X X X ..... h provision has been made under the rules to deal with inputs becoming waste and scrap in the course of manufacture or in the course of use as packing material - In the absence of any legal requirement to reverse credit, appellants cannot be asked to reverse the credit taken on the inputs which they have put to use for the intended purpose but which have become torn and non-useable in the course o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bags which get damaged in the course of packing of cement. He states that such bags are sold as scrap as they cannot be used for packing of cement. He further states that only when inputs are cleared as such, there is a requirement for reversal of the credit under Rule 3(5) of the CENVAT Credit Rules, 2004 but there is no such provision in respect of inputs which have become waste and scrap in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uch. There is also a provision for capital goods cleared as waste and scrap but no such provision has been made under the rules to deal with inputs becoming waste and scrap in the course of manufacture or in the course of use as packing material. In the absence of any legal requirement to reverse credit in such cases, the appellants cannot be asked to reverse the credit taken on the inputs which t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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