#waste and scrap

CESTAT ruled that waste and scrap generated incidentally during manufacturing do not qualify as 'exempted goods' under Rule 6(3) of the CENVAT Credit Rules, 2004. The Tribunal set aside the 6% payment demand, clarifying compliance obligations for manufacturers and job-workers dealing with incidental by-products.

The Customs Appellate Tribunal holds that goods unfit for original use due to off-spec composition qualify as waste and scrap under Section Note 8 of the Customs Tariff Act, regardless of chemical makeup.