9911796707
TMI Blog2021 (4) TMI 122X X X X Extracts X X X X X X X X Extracts X X X X ..... of Cenvat Credit on inputs, input services and capital goods under Cenvat Credit Rules, 2004. During the course of audit for the period 2016-17, Department noticed that appellant had cleared empty polythene bags of raw-material, empty drum of power oil worth Rs. 33,62,307/- in the name of waste sales without payment of duty, despite that the goods so cleared were non-excisable. Relying upon the Notification No.06/2015 dated 01.03.2015 which says that any non-excisable goods cleared from the factory will be treated as exempted goods and Cenvat Credit will be reversed on the same as per Rule 6 (3) of Cenvat Credit Rules. Accordingly, vide Show Cause Notice No.1729 dated 18.07.2018 the appellant was required to reverse the amount at the rate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion, as such, there is no infirmity in the Order under challenge. Appeal is prayed to be dismissed. 4. After hearing the Departmental Representative and perusing the grounds of appeal in the Appeal Memo as well as the Order dated 16.09.2019 as has been mailed to the Tribunal, I observe and hold as follows:- The Show Cause Notice as well as the orders of the adjudicating authority below have stated that provision of Rule 6 (3) of Cenvat Credit Rules, 2004 are attracted and accordingly the appellant has been asked to pay an amount of 6% of the value of empty drums and bags cleared from the factory. Accordingly, the moot issue to adjudicate is as to whether Rule 6(3) of CCR, 2004 is applicable to the given facts and circumstances. The Rule ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The CENVAT credit shall not be allowed on such quantity of inputs in or in relation to the manufacture of exempted goods or for provision of exempted services, or input services used in or in relation to the manufacture of exempted goods and their clearance upto the place of removal for provision of exempted service except in the circumstances mentioned in sub-rule (2) 8.1 This rule was amended w.e.f. 01.03.2015 by inserting: Explanation 1: - For the purpose of this rule, exempted goods or final products as defined in clause (d) and (h)of Rule 2 shall include non-excisable goods cleared for a consideration from the factory." Explanation 2: Value of non-excisable goods for the purpose of this rule, shall be the invoice value & where s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manufacturing process. Relying upon the said decisions and the above discussion about invocability of Rule 6 of CCR, 2004, I hold that the said Rule has wrongly been invoked in case of the appellant for demanding the reversal of Cenvat Credit availed by him at the rate of 6% of the value of empty packets of raw-material and empty drums of the oils used by the appellant in manufacture of PP woven fabric when cleared for consideration. Commissioner (Appeals) is rather observed to has gone contrary to the allegations holding that these bags and drums are admitted by the appellant to be excisable goods. Hence, these findings are not correct. 5. In view of entire above discussion, the order as such is not sustainable in the eyes of law, same is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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