The Central Board of Indirect Taxes and Customs (CBIC) has withdrawn its circular issued in the year 2016 regarding the excitability of wastes arising during the course of manufacture of an excisable product.
As per the earlier circular, it was stated that Bagasse, Dross and Skimmings of non-ferrous metals or any such byproduct or waste, which are non-excisable goods and are cleared fora consideration from the factory need to be treated like exempted goods for the purpose of reversal of credit of input and input services, in terms of rule 6 of the CENVAT Credit Rules, 2004.
Last year, the Supreme court in the case of Union of India Vs. M/s. Indian Sucrose Limited referred to its observations in the Union of India vs. M/s. DSCL Sugar Ltd & Ors. And held that Bagasse is non-excisable to which the CENVAT Credit Rules have no application, and held that the Circular dated 25.04.2016 is unsustainable in law.
“In light of the above judgement, Circular No. 1027/15/2016-CX dated 25.04.2016 has become non-est and is hereby rescinded. Cases kept in Call Book on the above issue, if any, may be taken out and adjudicated in light of the law decided by the Apex Court,” the circular said.
Subscribe Taxscan Premium to view the JudgmentBuy books of essential tax practice with exciting offers at shopscan.in
