Case Law Details
Alkem Laboratories Ltd Vs C.C.E. & S.T. (CESTAT Ahmedabad)
CESTAT Ahmedabad held that spent solvent (DMF) arising during the course of manufacture of dutiable ‘Sucralose’ is not dutiable and hence demand of excise duty thereof is not sustainable in law.
Facts- The appellants are engaged in the manufacture of excisable goods falling under Chapter 21 and 29 of Schedule to the Central Excise Tariff Act, 1985. The appellants are also availing CENVAT Credit of duty paid on capital goods, inputs used in or in relation to the manufacture of finished goods.
During the preventive check carried out by the officers of the department at the factory premises of the appellant. The visiting officers recovered (i) a diary containing details of removal of DMF solvent on cash basis from the office of the senior executive, and (ii) a file containing commercial invoices and delivery challans issued for sale of waste and scrap of capital goods and packing materials on which CENVAT Credit was taken by the appellant. After completion of the investigation a SCN was issued to the appellants proposing to demand of excise duty on 3,53,215 kg of DMF spent solvent cleared without payment of duty and excise duty u/r 3(5A) on waste and scrap of various M.S.items and packing materials cleared without payment of duty under commercial invoice.
Conclusion-
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