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TMI Blog2025 (4) TMI 631X X X X Extracts X X X X X X X X Extracts X X X X ..... and Oleoresin Marigold falling under Chapter sub-heading 33019029, 33019022 and 13019045 of the Central Excise Tariff Act, 1985. The appellant was issued with a show-cause notice dated 10.05.2012 alleging that during the course of manufacture of finished goods which are cleared on payment of duty to domestic market as well as for export, failed to comply with provisions of Rule 6(3) of the Cenvat Credit Rules, 2004 inasmuch as the product chilli seeds and chilli de-oiled cake which emerged during the process of manufacture of the said Oleoresin were cleared by the appellant without payment of duty. It was also alleged that the appellant had availed inadmissible credit of Rs.3,15,028/- on Oleoresin paprika received from M/s. Kancor Ingredien ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CCR 2004 to chilli seeds as raw chilli procured by the appellant are cut and the seeds are removed from the same. Till the stage of separation of seeds from the chilli, no cenvat credit was availed on any of inputs; the cenvatable inputs were used by the appellant only during the extraction process. Therefore, various inputs on which cenvat credit was availed by the appellant are solely used in the manufacture of Oleoresin which is dutiable and no part of such inputs are used in the manufacture / production of chilli seeds. Therefore, the appellant is entitled to avail credit on such inputs which are used in the manufacture / extraction process and the demand of 10% or 5% of the value of chilli seeds is not sustainable. With regard to cenva ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... resent show-cause notice was issued on 10.05.2012; therefore no proceeding was pending as on the date of the Presidential assent to the Finance Act, 2010. It is their contention that therefore the said judgment is not applicable to the present case. Further, he has submitted that the Department itself has taken a view in the Conference of Chief Commissioners on the basis of Tariff Conference held on 28 & 29.10.2015 that there are two alternative mechanisms prescribed under Rule 6 of the CCR, 2004; one payment of an amount equivalent to the 6% of the value of the exempted goods/services and the second one is to reverse proportionate cenvat credit attributable to exempted goods/services. Therefore, the demand on this count cannot be sustained ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... they have received and later exported from their factory under Rule 16 of the CCR, 2002, it is submitted that the same cannot be denied in view of the settled position of law by this Tribunal in a series of cases. In support, they have referred to the judgment of this Tribunal in the case of S. Kumars Nationwide Ltd. Vs. CCE, Indore [2014(312) ELT 725 (Tri. Del.)], NCL Industries Ltd. Vs. CCE&ST, Guntur [2016(337) ELT 438 (Tri. Hyd.)]. 4. Learned AR for the Revenue has reiterated the findings of the learned Commissioner. 5. Heard both sides and perused the records. 6. The issues involved in the present appeal are whether: (i) the appellants are required to pay 10%/5% of the value of the chilli seeds and chilli de-oiled cake / marigold d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Tribunal in the case of Alstom T&D India Ltd. Vs. CCE [2019(370) ELT 625 (Tri. Chennai)]; Cranes & Structural Engineers Vs. CCE [2017(347) ELT 112 (Tri. Bang.)] and Mercedes Benz India (P) Ltd. Vs. CCE [2015(40) STR 381 (Tri. Mum.)]. 8. Regarding reversal of cenvat credit on the de-oiled cake which emerged during the course of manufacture of Oleoresin, we find that it is waste product; hence cenvat credit attributable to such waste are not required to be reversed in view of the principle of law laid down by the Tribunal and High Court in the cases of Rallis India Ltd. Vs UOI [2009(233) ELT 301 (Bom.)]; Principal Commissioner Vs. Barmalt India Pvt. Ltd. [2018(11) GSTL 302 (P&H)]; Balrampur Chinni Mills Ltd. Vs. UOI [2019(368) ELT 27 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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