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TMI Blog2022 (10) TMI 317X X X X Extracts X X X X X X X X Extracts X X X X ..... clearance of old plant, which consists of zinc parts. 3. The appellant is engaged in the manufacture of ERW Steel Tubes/ Pipes falling under CETH No. 73063090 and were availing cenvat credit of duties paid on inputs, capital goods and input services. HR coil is basic raw materials, which are slitted according to required sizes, bended and welded so as to manufacture ERW (electric resistance welded pipe/ tube) steel tubes/ pipes. Thereafter, the pipes/ tubes are zinc coated / galvanised. For this, zinc is put in vessels and melted at 450 degree temperature and pipes are put or dipped inside the vessels so pipes are galvanised or zinc coated. 4. During the course of audit and on verification of various records, it was observed that the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned for clearance of waste product being zinc dross / ash. It is urged that on these products, the provision of Rule 6(3) are not attracted as these are not finished product and are waste and scrap generated in the course of manufacture. Learned Counsel for the appellant relied upon the ruling of Hon'ble Supreme Court in the case of Rallis India Ltd., vs. Union of India - 2014 (303) ELT 321 (SC) wherein batch of appeals were disposed of by the Court, was considering the applicability of the Rule 57CC of the Central Excise Rules, 1944, which is pari materia to Rule 6(3) of Cenvat Credit Rules, 2004. The Hon'ble Court held that the provisions cannot be read in isolation. In order to understand the scheme of modvat credit contained in this Rul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Appeals) relying on the Board Circular No. 1027/15/2016-CX dated 25.04.2016 with respect to clearance of bagasse, dross & skimmings of non - ferrous metals or any such by-product or waste which are non-excisable goods and are cleared on sale 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 Cenvat Credit Rules, 2004. Further observed that appellant have cleared both dutiable as well as exempted goods and they have availed cenvat credit on the inputs, they are required to pay the specified amount under Rule 6(3)(i) as they have not maintained separate account. 9. As regards the clearance of zinc parts of the old plant cleared by invoice No. 157 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been confirmed by Hon'ble Supreme Court in the case of Hindustan Zinc Ltd., (supra). 11. It is further urged that admittedly there is no allegation by the Revenue in the show cause notice that the appellant has disposed of zinc, parts of the old plant, on which cenvat credit was taken. Thus, the Commissioner (Appeals) has held in observing that appellant has not led any evidence. Accordingly, he prays for allowing the appeal with consequential benefits. 12. Learned Authorised Representative Sh. Ishwar Charan, appearing for the Revenue relies on the impugned order. 13. Having considered the rival contentions, I find that so far the first issue is concerned regarding reversal of cenvat credit on clearance of waste product namely zinc dros ..... X X X X Extracts X X X X X X X X Extracts X X X X
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