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TMI Blog2022 (11) TMI 919X X X X Extracts X X X X X X X X Extracts X X X X ..... anufacturing of MS Black Pipes and Galvanised from Pipes/ Tubes and during its manufacturing process unusable waste/residue in the form of zinc dross, zinc dust and flux skimming are generated which cannot be avoided. The appellant used to sold the said waste/residue in open market. As per department the said waste/residue are exempted goods and hence provisions of Rule 6(3) of Cenvat Credit Rules, 2004 are attracted. Accordingly, two show cause notices were issued to the appellant. First one was dated 26.2.2018 for liability of Rs.24,79,772/- for the period 2015-16 and the second show cause notice was dated 5.4.2018 demanding Rs.28,20,639/- for the period 2016-17 (up to June, 2017) along with interest and equal penalty. The Adjudicating Au ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Tribunal in Appellant's own case M/s. APL Apollo Tubes Ltd. (Unit-II) vs. Commr. GST & CE; Final order No.40925/2019, dated 12.7.2019 in which the Tribunal while dealing with the aforesaid amendment in Rule 6 ibid allowed the Appeal filed by the appellant and held that when the zinc scrap, a waste arising out of process of manufacture of finished goods, is not the goods manufactured by the appellant, the same cannot be considered as exempted goods manufactured by them. The relevant portion of the said decision is reproduced hereunder:- "xxx xxx xxx 4. Heard both sides. 5. The issue is whether appellants have to pay an amount of 6% of the value of the zinc scrap cleared by them. The department has relied upon Explanation (1) introduc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd that the said grounds of the Revenue was dealt with by the Tribunal in the case of Commissioner of Central Excise & Service Tax, Meerut-I V/s M/s Bajaj Hindusthan Sugar Ltd. vide Final Order No.70916/2019 dated 01 May, 2019 it was observed as under:- "3. I have heard the learned Departmental Representative on behalf of the Revenue. The respondents were manufacturers of sugar and molasses. They were removing Bagasse and Press Mud. The period covered is from 1st March 2015 to 31st March 2016. In view of the amendment in explanation under sub-rule (1) of Rule 6 of Cenvat Credit Rules, 2004 w.e.f. 01.03.2015 there was an obligation on the part of the manufacturer to pay amount under subrule 3 of said Rule 6 at a fixed percentage of the val ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Appellant's sister concern therein. The relevant paragraphs of this decision are also reproduced hereunder:- "2. As per facts on record, the appellant is engaged in the manufacture of tubes during the manufacture of which unusable waste/residue is generated in the nature of flux skimming/zinc dross etc. the said waste is being sold by the assessee. 3. Revenue by entertaining a view that inasmuch as the appellant has availed Cenvat credit of duty paid on the common Cenvatable inputs used in the manufacture of excisable goods as also in the manufacture of said dross/skimming, they are required to pay 10% of the value of the said waste material in terms of the provisions of Rule 6(3) of Cenvat Credit Rules. It is the Revenue's case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f zinc waste/dross which comes into existence during the manufacture of Galvanized Steel Pipes/Tubes. Further, I find that the ratio in the case of APL Apollo Tubes Ltd. is squarely applicable in the present case and therefore, by following the ratio of the said decisions, I am of the considered view that the impugned order is not sustainable in law therefore I set aside the same by allowing the appeal of the appellant." 7. In view of the series of decisions of different Benches of the Tribunal deciding the issue in favour of the assessee, even after considering the amendment made in Rule 6 ibid, I am inclined to set aside the impugned order and the same is accordingly set aside. The appeals filed by the Appellant are accordingly allowed w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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