M/s Nahar Poly Film Ltd. Versus CGST, CC & CE, Bhopal
Central Excise
2018 (2) TMI 1398 – CESTAT NEW DELHI – TMI
CESTAT NEW DELHI – AT
Dated:- 7-2-2018
E/51856/2017-SM – A/50554/2018-SM[BR]
Central Excise
Mr. Ashok Jindal, Member (Judicial)
Shri Z.U. Alvi, Advocate – for the appellant
Shri G.R. Singh, D.R. – for the respondent
ORDER
Per: Ashok Jindal
The appellant is in appeal against the impugned order wherein demand of Rs. 3,92,916/- has been confirmed under Explanation 1 to Rule 6 (1) of Cenvat Credit Rules, 2004 along with penalty.
2. The facts of the case are that the appellant is manufacturer of poly films. To manufacture poly films, the appellant required plastic granules and certain chemicals in ba
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provisions of Rule 6(1) or explanation thereof are not applicable to the facts of the case. He also took the support of the decision of the Hon'ble Apex Court in the case of CCE Vs. West Coast Industrial Gases Ltd. – 2003 (155) ELT 11 (SC).
4. On the other hand, ld. DR supported the impugned order and submits that the decision of the Hon'ble Apex Court in the case of West Coast Industrial Gases Ltd. (supra) is not applicable to the facts of this case as the explanation to Rule 6(1) has been inserted from 1.3.2015.
5. Heard the paties. Considered the submissions.
6. For better appreciation, Rule 6(1) and explanation thereto is extracted herein below.
(1) The CENVAT credit shall not be allowed on such quantity of input as is used in or i
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are applicable where the assessee is manufacturing dutiable as well as exempted goods. The appellant is not manufacturing these bags or barrels, therefore, Rule 6(1) or explanation thereto is not applicable to the facts of this case. Further, in the case of West Coast Industrial Gases Ltd. (supra), the Hon'ble Apex Court has examined the issue whether these bags or barrels can be treated as waste arising out of process of manufacturing or not. It was held by the Hon'ble Apex Court that the waste of raw material cannot be treated as a result of manufacturing activity and on that said logic, the Hon'ble Apex Court held that as these are not arising out of manufacturing process. Therefore, no provisions of Rule 57F of erstwhile Central Excise
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