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TMI Blog2024 (3) TMI 1035X X X X Extracts X X X X X X X X Extracts X X X X ..... erein it was held that the dross and skimming of aluminium, zinc or other non-ferrous metals since emerges as waste, that the zinc dross and zinc ash cannot be treated as excisable commodities. Subsequent to the said decision, the Hon ble Supreme Court had again took up the issue in the case of UNION OF INDIA VERSUS DSCL SUGAR LTD. [ 2015 (10) TMI 566 - SUPREME COURT] holding that the waste products (Baggasse in the said case) emerging during the manufacturing process of the final product are not the outcome of any process which can be termed as manufacture. Thus, such waste products cannot be categorized as exempted goods. Hence question of applicability of Cenvat Credit Rules does not at all arise. Commissioner (Appeals) in the present ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... proposal was initially confirmed vide Order-in-Original No. 10/21-22 dated 07.03.2022. The appeal against the said order has been rejected vide the Order-in-Appeal No.22-2023-24 dated 26.04.2023. Still being aggrieved, the appellant is before this Tribunal. 2. I have heard Mr. Raj Kumar Ambwani, ld. Counsel for the appellant and Mr. Mahesh Bhardwaj, ld. Departmental Representative for the Revenue. 3. Ld. Counsel for the appellant has mentioned that the order under challenge has been passed by mis-interpreting the basic provisions of Cenvat Credit Rules, 2004 (CCR) and sub rule 6(3) of CCR, 2004. The Explanation (1) was added to Rule 6(1) of CCR, 2004 with effect from 01.03.2015. The same cannot be applied in respect of zinc/ dross/ash/ was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt. It is also mentioned that subsequent to the decision of Hon ble Supreme Court in the case of Union of India vs. M/s. DSCL Sugar Ltd. reported as 2015 (322) E.L.T. 769 (S.C.), the Circular of 2016 dated 25.04.2016 still recites that the dross need to be treated like the exempted goods. Hence while relying upon the said Circular, Commissioner (Appeals) has committed no error. Impressing upon no infirmity in the order, appeal is prayed to be dismissed. 6. Having heard both the parties and perusing the record, it is observed that the only issue in the present appeal to be adjudicated is: Whether zinc dross which emerged during the manufacture of final product of the appellant, due to the galvanizing process involved in the said manufacturin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of credit of input and input services, in terms of rule 6 of the CENVAT Credit Rules, 2004. 7. The Circular was again challenged before the Hon ble Supreme Court in the case of Union of India vs. Indian Sucrose Limited in SLP (C) No. 1700/2021 decided on 04.03.2022 vide which while reiterating its own observation given in the case of Union of India vs. M/s.DSEL Sugar Ltd supra, it was held that the waste products arising out of manufacturing processes are non-excisable goods to which Cenvat Credit Rules have no application. Circular dated 25.04.2016 was held unsustainable in law. Subsequent to the said decision that Department also came up with another Circular No.1084/2005 dated 07.07.2022 rescinding the Circular of 25.04.2016 in the ligh ..... X X X X Extracts X X X X X X X X Extracts X X X X
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