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TMI Blog2016 (12) TMI 980X X X X Extracts X X X X X X X X Extracts X X X X ..... s the authorities to insist on reversal 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. Considering the fact that waste has been destroyed in the course of normal manufacturing process and which is everyday occurrence and following the observations made by various higher judicial fora quoted above, the appeal is allowed with consequential relief - decided in favor of appellant-assessee. - Appeal No. E/52297/2016-EX (SM) - Final Order No. 54540/2016 - Dated:- 25-10-2016 - Mr. Ashok K. Arya, Member (Technical) Shri Shaswat, Advocate for the appellant Shri K. Poddar, A.R. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (h) Grasim Industries Vs. CCE 2007 (208) ELT 336 (Tri.-LB). (i) Harinagar Sugar Mills Ltd. Vs. CCE 2014 (310) ELT 775 (Tri.-Mum.) (j) CCE Vs. Joy Foam Pvt. Ltd. 2015 (322) ELT 209 (Mad.). (k) Mondelez India Foods Pvt. Ltd. Vs. CCE ST Final Order No. A/51617-51618/2015-SM(BR) dated 30.4.2015. 4. The ld. AR, on behalf of Revenue reiterated the findings given by the lower Revenue authorities. He inter alia submits as under : (i) The appellant under Rule 21 of Central Excise Rules, 2002 should have applied for remission of duty for the goods destroyed. (ii) In support of reliance is placed on CESTAT decision in the case of Asian Paints Vs. CCR 2004 (173) ELT 187 (CESTAT). 5. I have carefully considered the fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore it is clear that when inputs are removed as such from the factory or the premises of the factory then the Cenvat credit availed, should either be reversed or duty is paid by raising an independent invoice. In the instant case, it is nobody s case that the input is removed from the factory premises in the same condition in which it was bought 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 if it had been removed from the place ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tral Excise and Customs v. Biopac India Corporation Ltd., reported in 2010 (258) E.L.T. 56 (Guj.) has taken a similar view and held that goods destroyed in fire after being used for many years cannot be said as not used in the manufacture of final and finished product and the assessee need not reverse the credit availed on inputs used in finished or semi-finished goods. 11. We are fully in agreement with the view taken by the Gujarat High Court. Further clause (5C) to Rule 3 of the Cenvat Credit Rules, 2004 would be invoked where on any goods manufactured or produced by an assessee, the payment of duty is ordered to be remitted under Rule 21 of the Central Excise Rules, 2002, the Cenvat credit taken on the inputs used in the manufactur ..... X X X X Extracts X X X X X X X X Extracts X X X X
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