Rule 6 Reversal Inapplicable to Job Work scrap

The CESTAT, set aside demands raised under Rule 6(3) of the CENVAT Credit Rules, 2004. 

The Tribunal held that manufacturing goods on job work basis cannot simultaneously be treated as an exempted service for the purpose of Rule 6. 

It further held that waste and scrap arising during manufacture are not "manufactured goods" and, therefore, no reversal under Rule 6 is attracted merely because such waste is exempt or non-excisable.