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TMI Blog2018 (2) TMI 1556X X X X Extracts X X X X X X X X Extracts X X X X ..... ORDER Per Ms. Archana Wadhwa After hearing both the sides, I find that the appellant is engaged in the manufacture of refrigerant gases and other chemicals falling under Chapter 28 and 29 of the schedule to the Central Excise Tariff Act, 1985. During the period August 2009 to May 2010, they removed various types of scrap generated from the old and used capital goods which were mainly in the nat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch the various damaged structural parts have arisen, there was no requirement of payment of any duty or reversal of any Cenvat credit. 3. The appellate authority while dealing with the above plea of the assessee observed as under: "From the above judgements it is clear that an amount equal to the duty leviable on transaction value is liable to be paid and it cannot be said that this amount is l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terms of Rule 3(5A) by observing that even if the credit was not availed on the capital goods, out of which the scrap has arisen, still the appellant was required to pay the duty on the transaction value. For the above proposition, he has strongly relied upon the provisions of Rule 3(5A) which are to the effect that - "if the capital goods are cleared as waste and scrap, the manufacturer shall pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r as such or in the shape of waste and scrap. As such sub rule 5A would also take its colour from the preceding rules which are relatable to the clearance of capital goods on which credit has been availed. Independent and solo reading of Rule 5A without appreciating the context in which the same is appearing, as has been done by the authorities below, is not in accordance with the principles of in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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