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TMI Blog2024 (11) TMI 715X X X X Extracts X X X X X X X X Extracts X X X X ..... E [ 2012 (11) TMI 532 - GUJARAT HIGH COURT] wherein it was held that the fuel oil lying in the engine room is part and parcel of the ship which is imported for breaking which means the fuel oil cannot be given different treatment than the entire ship. Consequently, for the purpose of cenvat also no discrimination can be made between the entire ship and the bunker lying in the engine room. Therefore, the case of Priya Blue holding directly supports the case of the respondent. Moreover, on a very identical issue, the tribunal in the case of Navyug Ship Breaking Co. [ 2023 (3) TMI 636 - CESTAT AHMEDABAD ] held that ' Learned Commissioner (Appeals) has rightly held that in view of para 6 of the circular no. 1014/2/2016-CX., dated 1-2-2016, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e same deserves to be set aside. 3. Ms. Dimple Gohil, Learned Counsel appearing on behalf of the assessee at the outset submits that the Commissioner (Appeals) has relied upon the judgment of Hon ble Gujarat High Court in the case of Priya Holding (Supra) wherein it was held that the fuel oil lying in the engine room is part and parcel of the entire ship imported for breaking, therefore, no different treatment can be given for the purpose of cenvat to the entire ship and the fuel oil. She further submits that the very specific issue of cenvat credit on the fuel involved in the present was also considered by this Tribunal in the case of Navyug Ship Breaking Co. 2023 (3) TMI 636. She also placed reliance on the following judgments and the boa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssed the following order:- 5. We have carefully considered the rival submissions and perused the records. It can be seen that obtaining of goods and material by process of breaking ship is deemed as manufacturing activity liable to central excise duty as per section note 9 of section XV of Central Excise Tariff Act, 1985 which reads as under: in relation to the products of this section, the process of obtaining goods and material by breaking up of ships, boats and floating structure shall amount to 'manufacture'. Section XV covers all goods and materials falling under section 72 to 83 of the Schedule 1 appended to the Central Excise Tariff Act, 1985. Thus, all such goods and materials obtained by such process are considered as ' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and parcel of the ship or that they are removed at a stage before commencing the activity of breaking ship or that their classification is under different heading. It is settled law that in the course of manufacturing activity any by-product emerges; cenvat credit on that part which pertains to by-product cannot be denied on the ground that such by-products are non-excisable goods or that they are not used in or in relation to manufacturing activity of manufacturer of excisable goods. This was made clear by para 3.7 of CBEC Manual for supplementary instructions that states as follows : CENVAT credit is also admissible in respect of the amount of inputs contained in any of the waste, refuse or by-product. Similarly, CENVAT is not be denied i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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