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TMI Blog2019 (2) TMI 403X X X X Extracts X X X X X X X X Extracts X X X X ..... r res integra and it has been held in the cases of Menon & Menon [2017 (12) TMI 85 - CESTAT MUMBAI] and M/s Shivratna Udyog Ltd [2017 (9) TMI 985 - CESTAT MUMBAI] that explanation (1) to Rule 6 of CENVAT Credit Rules, 2004 covers non-excisable goods manufactured or produced using inputs on which CENVAT credit has been availed. It does not cover waste material which arises during the process of man ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nding reversal of CENVAT credit proportionate to the value of the waste BOPP film and waste paper scrap cleared. The appellant contested the appeal and the lower authority confirmed the demand along with interest and imposed penalty in terms of Rule 15 of CENVAT Credit Rules, 2004. Aggrieved, the appellant appealed before the first appellate authority who, upheld the Order-in-Original and rejected ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4, the BOPP film and waste paper scrap, both of which are admittedly waste materials, should be treated as non-excisable goods cleared for consideration and proportionate amount of CENVAT credit has to be reversed. 5. Learned counsel would draw the attention of the Bench to the case of Menon Menon [2017 (12) TMI 85 (CESTAT-Mumbai)] in which an identical case was examined by the Tribunal i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 15/2016- CX dated 25/04/2016 in which it was clarified in Para 4.2 as follows. Consequently, Bagasse, Dross and Skimmings of non-ferrous metals or any such by-product or waste, which are non-excisable goods and are cleared for a consideration from the factory need to be treated like exempted goods for the purpose of reversal of credit of input and input services, in terms of rule 6 of the CEN ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 6 of CENVAT Credit Rules, 2004 covers non-excisable goods manufactured or produced using inputs on which CENVAT credit has been availed. It does not cover waste material which arises during the process of manufacturing even if the same is cleared for some consideration. 9. Respectfully following the ratio of the aforesaid orders, I allow the appeal and set aside the impugned order. (Operat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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