Duty-free clearance of factory waste and scrap for job work upheld under Notification No. 214/68-C.E. by Larger Bench precedent

Waste and scrap generated in a factory could be cleared to a job worker for conversion into ingots and returned without payment of duty under Notification No. 214/68-C.E., where the Larger Bench had already recognised that such removal for job work did not attract duty at the stage of clearance. The text also states that lower authorities were bound by the Larger Bench ruling and had to follow the majority view rather than the minority view. On that basis, clearance without duty was treated as permissible and the appellant succeeded on the issue.

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Issues: Whether waste and scrap generated in the factory could be cleared to a job worker for conversion into ingots and returned without payment of duty under Notification No. 214/68-C.E.

Analysis: The issue was held to be covered by the Larger Bench decision, which recognized that such waste and scrap could be sent to the job worker's factory for further conversion and that duty was not required to be paid at the stage of removal for such job work. The order also emphasized that lower authorities were bound to follow the law laid down by the Larger Bench and that judicial propriety required adherence to the majority view rather than the minority view.

Conclusion: The clearance of waste and scrap to the job worker without payment of duty was held to be permissible, and the appellant succeeded on the issue.

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