Job work waste and scrap duty liability fails where Notification 214/86-CE applies to the principal manufacturer.

Where raw materials are sent to a job worker under Notification No. 214/86-CE, duty cannot be fastened on the principal manufacturer for waste and scrap generated at the job worker's factory and cleared by the job worker without payment of duty. The dispute was treated as covered by the manufacturer's earlier case for an identical period, and on that basis the demand was held unsustainable. The impugned order was set aside, reaffirming that the principal manufacturer was not liable for duty on such waste and scrap in these facts.

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Issues: Whether the principal manufacturer was liable to discharge duty on waste and scrap arising at the job worker's factory and cleared by the job worker without payment of duty, where raw materials were sent for conversion under Notification No. 214/86-CE dated 25.3.1986.

Analysis: The dispute was treated as covered by the appellant's own earlier case for an identical period. Following that earlier decision, the demand was found to be unsustainable, and the impugned order was set aside.

Conclusion: The demand on the principal manufacturer in respect of waste and scrap cleared by the job worker without payment of duty was not sustainable.

Ratio Decidendi: Where goods are sent to a job worker under Notification No. 214/86-CE, duty cannot be fastened on the principal manufacturer for waste and scrap arising at the job worker's factory and cleared by the job worker without payment of duty.

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