9911796707
TMI Blog2017 (11) TMI 1477X X X X Extracts X X X X X X X X Extracts X X X X ..... try - for verification, the matter may be remanded. CENVAT credit - Aluminum scrap - The view of the Revenue is that this amounts to clearance of inputs as such and will incur the mischief of rule 3 (5) of the Cenvat Credit Rules, 2004 and requires reversal of credit availed on this portion of the scrap - Held that: - a similar issue pertaining to segregation of copper scrap has arisen in the past and Circular No. 1029/17/2016 CX dated 10/05/2016 was issued by CBEC. The circular has clarified the treatment to be given to the clearance of segregated foreign material - It is not clear from the impugned order whether the Adjudicating Authority had the benefit of the clarification issued by the board at the time of passing the order - matter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny dispatches the containers directly from port to company s manufacturing units. ii. The Company has an IEC Code No. 0504077562 which has been issued in the name of the registered office of the Company at New Delhi. However, the names of all the manufacturing units of the company are duly mentioned in it. As a practice the name of the importer always mentioned in the Bills of Entry is the Tararpur, Dist Palwal Unit. All the imports of the Company through ICD, Dadri, are made under the said IEC Code. All the manufacturing units are also separately registered with Central Excise. iii. Depending upon the requirement of imported scrap in the different units of the Company, the containers containing the scrap are dispatched directly from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as of the view that part of the imported scrap cleared as above has to be considered as clearance of impugned, as such and hence as per Rule 3 (5) of the CCR 2004, the appellant should reverse the credit availed on this portion of the scrap instead of paying duty on the transaction value on such segregated material. Accordingly, differential duty of ₹ 4,84,52,101/- for the period 1/4/12 to 31/7/2015 was demanded from the appellant. Aggrieved by the impugned order, which also demanded interest as well as penalty equal to the duty demanded above, the present appeals have been filed. 4. With the above background we heard Shri K.K. Anand for the appellant as well as Shri H. Saini, Ld. DR representing the Revenue. 5. The Ld. Advo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t each part of the full consignment is to be considered as duty paid and Cenvat Credit is to be allowed. The same has been disallowed by Adjudicating Authority for the reason that the only document under which part consignments have been received in Bhiwadi unit is the challan which is not specified document. But the fact remains that there is no dispute regarding the receipt of goods at the appellant s factory. To prove the point, the appellant has submitted detailed documentation through which they have attempted to establish that the part consignments belong to the original bills of entry. At this stage the Ld. DR has expressed inability to verify such bulky documents. He submitted that for verification, the matter may be remanded. 8. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relevant portion of clarification reads as follows. Subject: Clarification on segregation of impurities viz. iron, steel, rubber, plastic, dust etc. from honey grade brass scrap-Regarding. Representations have been received from the members of the trade involved in manufacture of brass products, regarding applicability of provisions relating to clearance of segregated foreign materials as inputs as such from imported honey grade brass scrap. The said imported scrap mainly contains brass metal but it also contains impurities like iron, steel, rubber, plastic, dust etc. which is integrally attached to the main material/ brass scrap. Before feeding resultant brass scrap in the furnace during the manufacturing process, the said fore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a-vis brass scrap. Value per unit and classification of the segregated foreign material is also different from that of imported brass scrap. Accordingly, clearance of foreign material such as iron, steel, rubber, plastic, dust etc. cannot be treated as clearance of inputs as such. It may be noted that circular no. 62/2001-Cus dated 12.11.2001 does not apply to the issue at hand as the facts at hand are different. 4. In view of above, it is clarified that the clearance of segregated foreign materials namely iron, steel, rubber, plastic, dust etc. from honey grade brass scrap before feeding in the furnace cannot be treated as removal of inputs as such as envisaged under Rule 3 (5) of CENVAT Credit Rules, 2004. The segregated foreign ma ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
