Rule 57F(2) job-work clearances of waste and scrap upheld where records showed receipt of converted goods.

Waste and copper scrap cleared to job workers under Rule 57F(2) could not be denied duty exemption where the records annexed to the show cause notice themselves showed the quantities cleared and the semi-manufactured goods received back. On that factual basis, the Revenue could not dispute that the waste and scrap had been sent for job work and the converted goods had been returned. The applicable legal position permitting such clearances had already been settled in favour of the assessee. The duty demand and reduced penalty were therefore unsustainable, and relief was granted to the assessee.

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Issues: Whether waste and copper scrap generated in manufacture and sent to job workers under Rule 57F(2) could be denied the benefit of duty exemption on the ground that the assessee failed to prove receipt back of the converted goods and maintenance of records.

Analysis: The records annexed to the show cause notice themselves reflected the quantities of waste and scrap cleared and the semi-manufactured goods received back. In view of those records, it was not open to the Revenue to dispute the assessee's claim that the waste and scrap had been sent to job workers and the resultant goods had been received back. The legal position permitting such clearance under Rule 57F(2) had already been settled in favour of the assessee.

Conclusion: The demand of duty and the reduced penalty could not be sustained, and the appeal succeeded in favour of the assessee.

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