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TMI Blog2019 (2) TMI 9X X X X Extracts X X X X X X X X Extracts X X X X ..... he Show Cause Notice has considered the waste and scrap of batteries as excisable goods - Once that proposition has been shot down by the Commissioner (Appeals) in paragraph 16(i) of the impugned Order, the further Order at paragraph 16(ii) directing the appellant to pay up the CENVAT Credit attributable to inputs involved in such non- excisable goods is definitely beyond the scope of the Show Cause Notice. On this very point, the impugned Order cannot sustain. The very issue of requirement of reversal of Credit in such cases has been addressed by the Tribunal in respect of the very same appellant in the case of Eveready Industries India Ltd. [2018 (6) TMI 625 - CESTAT ALLAHABAD], where it was held that C.B.E. & C. Instruction stand that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ions of Rule 6(3)(i) of the CCR, 2004. Therefore, the demand of 5% of the value of waste and scrap of batteries was dropped; (ii) However, the CENVAT Credit attributable to the inputs involved in such non-excisable goods have to be reversed by the appellant; (iii) Penalty imposed under Rule 15(1) is set aside. 3. Today when the matter came up for hearing, Ld. Advocate Shri. R. Sai Prashanth appearing on behalf of the appellant submits that the appellants are in appeal only in respect of the Commissioner (Appeals) decision that the CENVAT Credit attributable to inputs in respect of waste and scrap of batteries are to be reversed by the appellant. 4. On the other hand, Ld. AR Ms. T. Usha Devi appearing on behalf of the respondent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Cenvat credit is that the inputs should be used in the manufacture. There are no allegations in the show cause notice that the inputs or input services were not duty paid or the input or input services were not received in the factory or they were not used in the manufacture. The C.B.E. C. have issued circular in the past which is not withdrawn. He has further argued that even today C.B.E. C. Manual on Supplementary Instruction under Chapter 5 at Para 3.7 clarifies as follows : 3.7 Cenvat credit is also admissible in respect of the amount of inputs contained in any of the waste, refuse or bye product. Similarly, Cenvat is not to be denied if the inputs are used in any intermediate of the final product even if such intermediate is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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