Excise duty on scrap at job worker's end was negated after duty payment and amended CENVAT provisions.

A principal manufacturer supplying inputs to a job worker was considered in relation to central excise duty on scrap generated at the job worker's end and not returned within the prescribed time under the relevant notification and rules. The Court noted that duty had already been paid on the scrap for the relevant period and that, after 31 March 2000, the amended CENVAT credit provisions removed liability for the principal manufacturer. On that factual and legal basis, it held that no substantial question of law arose and that the assessee was not liable to pay central excise duty on the scrap in the circumstances considered.

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Issues: Whether the assessee, being the supplier of inputs to a job worker, was liable to pay central excise duty on scrap generated at the job worker's end and not received back within the stipulated time under the relevant notification and rules.

Analysis: The Court noted that the assessee had already paid duty on the scrap generated at the job worker's factory for the relevant period and that, after 31 March 2000, there was no liability on the principal manufacturer in view of the amended CENVAT credit provisions. On that factual and legal basis, the Court held that no substantial question of law arose for consideration.

Conclusion: The assessee was not liable to pay central excise duty on the scrap in the circumstances considered, and the challenge failed.

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