Custom, Excise & Service Tax Tribunal
M/S Ambuja Cements Limited vs Cce & St, Chandigarh-Ii on 6 January, 2017
CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL
SCO 147-148, SECTOR 17-C, CHANDIGARH-160017
SINGLE BENCH
COURT NO.1
Appeal No. E/2297/2009
[Arising out of the Order-in-Appeal No. 15/CE/Appl/CHD-II/2009 dated 19.05.2009 passed by the CCE (Appeals), Chandigarh-II]
Date of Hearing/Decision: 06.01.2017
For Approval & signature:
Honble Mr. Ashok Jindal, Member (Judicial)
M/s Ambuja Cements Limited Appellant
Vs.
CCE & ST, Chandigarh-II Respondent
Appearance:
Sh. Amrinder Singh, Advocate- for the appellant Sh. H.Singh, AR- for the respondent , Coram:
Honble Mr. Ashok Jindal, Member (Judicial) Final Order No : 60055 / 2017 Per Ashok Jindal:
1. Brief facts of the case are that the appellant is engaged in the manufacture of Cement clinker and cement during the course of manufacturing of cement and its packing, some waste and scrap is of different kinds viz scrap of plastic scrap emerging from PVC belts being used in the machinery, cable scrap emerging during the course of packing of cement, waste and scrap of grinding material and waste lubricant oil and greases. The appellant has cleared these scrap of inputs, packing materials and capital goods without payment of duty. As the appellant had availed cenvat credit on inputs, therefore, the duty was demanded on the clearance of this waste and scrap alongwith interest. The matter was adjudicated and the demand of duty was confirmed against the appellant but the Ld. Commissioner (A) confirmed the demand on cable scrap and PVC scraps has arisen in the factory from the parts conveyor belt attached with machine used as capital goods and raise of demand was set aside. Aggrieved from the demand confirmed against the appellant, the appellant is in appeal.
2. Heard both sides.
3. Considering the fact that the issue of PVC Scrap has arisen in the factory from the parts conveyor belt attached with machine is required to be cleared on payment of duty has been dealt by this Tribunal in appellants own case reported in 2015 (316) ELT 272 (Tri. Mum.) wherein this Tribunal observed as under:
5. The ld. Counsel for the respondent-assessee submitted that the waste and scrap of HDPE bags not arisen during the manufacturing process and, therefore, there cannot be any duty liability on removal of such waste and scrap. The learned counsel further submitted that the PP wrapper is not used for packing the final product and is an outer packing in which HDPE bags are received and that the cement is packed in HDPE bags. The learned counsel has also submitted that the demand of duty on grinding media balls is also not sustainable and that the grinding media is used in ball mill or grinding mills in the manufacture of cement and is eligible for credit as input. The learned counsel has relied upon the decision of the Honble Supreme Court in the case of CCE Vs. West Coast Industrial Gases Ltd. reported in 2003 (155) ELT 11 (SC).
6. I find that the issue is covered by the decision of the Honble Supreme Court in the case of Wet Coast Industrial Gases ltd. (Supra) read with Boards Circular No. 721/37/2003-CX., dated 06.06.2003. Following the said decision of the Honble Supreme Court and the circular, I dismiss the appeal of the Revenue.
4. As issue has already been settled in the appellants own case, therefore, I hold that the appellant is entitled to avail the cenvat credit on cable scrap and PVC scrap which has been arisen from the part of conveyor belt attached with machine, therefore, the impugned order is set aside, qua demanding duty for the appellant.
Consequently, the appeal is allowed. (Dictated and pronounced in the open court) Ashok Jindal Member (Judicial) rt 1 E/2297/2009 M/s Ambuja Cement Limited Vs. CCE & ST, Chandigarh