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TMI Blog2022 (1) TMI 710X X X X Extracts X X X X X X X X Extracts X X X X ..... visions of Rule 9 (6) of CCR has been rightly upheld on clearance of waste and scrap (old empty soda bags), guddar, old PVC drum, old empty bags, etc.) 2. The brief facts are that the appellant is a manufacturer of Detergent Powder, Acid Slurry and Acid Spent, which are dutiable. So far the issue of disallowance of cenvat credit on management and maintenance and repair services is concerned, the appellant have paid the amount (including service tax) for services provided by the Audyogik Kendriya Vikas Nigam (AKVN), Indore, which is a statutory body of the Government of Madhya Pradesh, for providing the services - maintenance of road, drainage, street lights, etc. The Adjudicating Authority held that these services are received beyond ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... operties, wherein it was held that without maintenance of adjoining roads, etc., the business premises cannot function, and without maintenance charges lease of business premises cannot continue. Thus, it was held that these maintenance charges are indirectly related to the business and fell in the main part of the definition of input services. The Tribunal allowed the ground in favour of the appellant. 5. Ld. Commissioner (Appeals) further observed that as regards other ISD invoices, on which cenvat credit has been availed on maintenance and repair services, these pertains to civil and electrical and maintenance work. However, it has not been clarified that, as to where or in which factory these services were availed, and it is not clear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons. Accordingly, I hold that the amount disallowed is bad and the ground is allowed in favour of the appellant. 8. As regards the demand of 6% on clearance of waste and scrap, the Court below has, relying on Rule 6 of CCR, held that exempted goods also include non-excisable goods after the amendment vide notification no.6/2015-CE (NT) dated 1.3.2015, wherein Explanation I and II have been inserted and the amended rule reads as under:- "1. The CENVAT credit shall not be allowed on such quantity of input used in or in relation to the manufacture of exempted goods or for provision of exempted goods and their clearance upto the place of removal or for provision of exempted services except in the circumstances mentioned in the sub-rule (2). ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reliance is placed on the Board's Circular No.721/37/2003-CX dated 6.6.2003, wherein the Board relying on the ruling of the Hon'ble Supreme Court in the case of West Coast Industrial Gases Ltd. Vs. CCE [2003 (4) TMI 110 has clarified that no duty is payable on removal of empty bags and empty boxes and wooden bags. 10. Having considered the rival contentions on this issue, I hold that the provisions of Rule 6 is attracted, only where the manufacturer clears both manufactured dutiable and exempted goods. Admittedly, the scrap cleared by the appellant are not manufactured scrap or scrap arising in the course of manufacture of final products or bye-products. 11. Accordingly, I hold that the provisions of Rule 6 are not attracted in the facts ..... X X X X Extracts X X X X X X X X Extracts X X X X
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