2015 (9) TMI 769 - AT - Central Excise

Manufacturer not liable for duty on waste/scrap per CESTAT ruling. Appeal allowed, order overturned.

The Appellate Tribunal CESTAT NEW DELHI ruled in favor of the principle manufacturer, stating they are not obligated to pay duty on waste and scrap ... Waste and scrap generated at the end of Job Worker - whether the principle manufacturer is required to pay duty on waste and scrap generated at the end of job worker when the goods were sent to the job worker for processing under notification no. 214/86 or no - Held that:- principle manufacturer is not required to pay duty on waste and scrap generated at the end of job worker when the goods were sent to the job worker for processing under notification no. 214/86. The said order of this Tribunal [2005 (6) TMI 184 - CESTAT, MUMBAI] has been affirmed by the Hon’ble High Court of Bombay reported in [2006 (6) TMI 66 - HIGH COURT BOMBAY]. As issue has been settled by the Hon’ble High Court of Bombay as cited herein above, therefore, issue is no more res integra. In these circumstances we hold that appellants are not required to pay duty on waste and scrap generated at the end of job worker and processed the goods under notification no. 214/86 - Impugned order is set aside - Decided in favour of assessee. The Appellate Tribunal CESTAT NEW DELHI ruled that the principle manufacturer is not required to pay duty on waste and scrap generated at the end of job worker under notification no.214/86, based on a previous case and High Court affirmation. The appeal was allowed, and the impugned order was set aside.