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TMI Blog2011 (4) TMI 212X X X X Extracts X X X X X X X X Extracts X X X X ..... eversal of Cenvat Credit or payment of excise duty - Though gelatin waste is also excisable, when it is destroyed the Commissioner has the power to waive the payment of excise duty payable on such excisable item - Decided in favour of the assessee - CEA NO. 127 OF 2009 - - - Dated:- 12-4-2011 - N. KUMAR AND RAVI MALIMATH, JJ. N.R. Bhaskar for the Appellant. Lakshmikumaran and Sridharan for the Respondent. JUDGMENT N. Kumar, J. The revenue has preferred this appeal challenging the order passed by the Tribunal which has held that the Cenvat credit shall be admissible in respect of the amount of inputs contained in any waste, refuse or bye-product and therefore the assessee is under no obligation to reverse any Cenva ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the amount of inputs contained in any aforesaid waste, refuse or by product and therefore they set aside the order of demand and held that there is no liability to pay excise duty on the part of the assessee. Aggrieved by the said order, the present appeal is filed by the revenue. 3. This appeal is admitted to consider the following substantial questions of law : "(a) Whether the impugned order is legally sustainable in holding that Cenvat Credit availed is not required to be reversed on the inputs attributable to Gelatin Mass Waste generated during the course of manufacture of final product especially having availed remission of duty in terms of rule 21 of the Central Excise Rules ? (b) Whether the order of the Tribunal is legall ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... within the factory. The input so used in the manufacturing process and in the course of manufacturing process, this gelatin waste is generated as a bye-product as in the case of finished product. Therefore, the said waste is destroyed. The said destroyed waste is not removed from the factory premises. It was contended that the waste itself is excisable goods and no duty shall be paid thereon. If it is an excisable goods and if it had been removed from the place, the place of removal is outside the factory, then the excise duty is payable. 4. The material on record discloses that it was destroyed within the factory premises and it was not removed. Therefore the liability to pay excise duty on the said mass does not arise. Even if the said ..... X X X X Extracts X X X X X X X X Extracts X X X X
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