Duty on scrap at job worker's end was not payable after the amended Rule 57AC, following settled High Court guidance.

Duty was not payable on scrap generated at the job worker's end during machining of inputs, because the issue had already been settled in the assessee's own case by the High Court. The High Court had held that, after 31.03.2000 and in light of the amended Rule 57AC, the principal manufacturer had no duty liability on such scrap. The Tribunal treated the question as no longer open for reconsideration and applied that settled position, resulting in no duty demand on the scrap.

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Issues: Whether the assessee was liable to pay duty on scrap generated at the job worker's end during machining of inputs.

Analysis: The issue had already been settled in the assessee's own case by the High Court, which held that after 31.03.2000, in view of the amended Rule 57AC, the principal manufacturer had no duty liability on such scrap. The Tribunal treated the issue as no longer open for reconsideration.

Conclusion: The assessee was not liable to pay duty on the scrap generated at the job worker's end.

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