9911796707
TMI Blog2017 (1) TMI 283X X X X Extracts X X X X X X X X Extracts X X X X ..... Audit of records of the appellant for the period 2007-2008 and 2008-2009, the Central Excise officers observed that miscellaneous income towards sale of waste and scrap had been shown in the balance sheet for the respective years. Since the appellant avails cenvat credit on inputs and capital goods used in or in relation to manufacture of the final product, the department proceeded against the appellant for recovery of the cenvat credit, treating the removal of miscellaneous waste and scrap as cenvatable goods. The SCN issued by the department was adjudicated vide order dated 12.03.2010, confirming the Central Excise duty demand of Rs. 2,36,693/- along with interest and also equal amount of penalty was imposed on the appellant.& ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in fact not used as inputs in the manufacture of final product, thus the same cannot be considered as input for the purpose of taking of cenvat credit. With regard to generation of scrap on aluminum and steel items, the appellant submits that no cenvat credit has been taken by the appellant on initial procurement of those goods, and as such, reversal of credit is no required. 4. On the other hand, Sh. M. R. Sharma, the Ld. AR appearing for the revenue reiterates the findings recorded in the impugned order. 5. I have heard the Ld. Counsel for both the sides and perused the records. 6. I find that as regards the packing materials removed as waste and scrap by the appellant, the Hon'ble Supreme Court in the case of W ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... said decision was upheld by the Hon'ble Supreme Court, reported in 2002 (144) ELT A-210 (SC). 9. However, I find that the appellant has not produced adequate documents to demonstrate that no cenvat credit on iron and steel items removed as scrap were taken by the appellant. Since, the Ld. Advocate submits that the appellant had maintained adequate records, I am of the view that the matter should go back to the original authority for verification of records/ documents maintained by the appellant. If the appellant able to convince the original authority that no cenvat credit has been taken on the aluminum/ steel items removed as scrap, no demand shall be confirmed against the appellant on removal of those goods. 10. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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