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of <h1>Tribunal Rules Manufacturer Not Liable for Excise Duty on Job Worker's Waste, Scrap; Appeals Allowed.</h1> <h3>M/s. Greaves Cotton Ltd. Versus The Commissioner of CGST & Central Excise</h3> M/s. Greaves Cotton Ltd. Versus The Commissioner of CGST & Central Excise - TMI Issues:Whether the appellant, as the principal manufacturer, is liable to pay Central Excise duty on waste and scrap generated at the job worker's factory and cleared without payment of duty.Analysis:The judgment revolves around the issue of whether the appellant, a principal manufacturer, is obligated to pay Central Excise duty on waste and scrap produced at the job worker's factory and cleared without duty payment. The Tribunal, in Final Order No. 40770-40771/2024, had previously considered the same matter in the appellant's case and ruled in favor of the appellant based on earlier decisions. The Tribunal referred to various past orders involving the same appellant, such as Final Order No. 41315/2017, Final Order No. 41710/2017, and others, to support its decision.In Final Order No. 40226 to 40228/2023, the Tribunal reiterated that the principal manufacturer is not liable to pay duty on waste and scrap generated at the job worker's end. The appellant's counsel argued that Rule 4(5)(a) of the CENVAT Credit Rules, 2004 does not impose duty on the principal manufacturer for waste and scrap produced at the job worker's facility. This argument was supported by previous Final Orders in the appellant's favor.The Tribunal also highlighted that the decision in Final Order No. 41307/2017 was based on Rule 4(5)(a) of the Cenvat Credit Rules 2001, while the impugned orders invoked Rule 4(5)(a) of Cenvat Credit Rules 2004. It was noted that Rule 4(5)(a) of Cenvat Credit Rules 2004 does not make the principal manufacturer liable for duty on waste and scrap generated at the job worker's end. This position was reaffirmed in Final Order No. 40621/2019, further strengthening the appellant's case.Ultimately, the Tribunal concluded that the legal issue had been settled in previous orders, and hence, the impugned orders were set aside, and the appeals were allowed with consequential benefits as per law. The judgment emphasized the consistent application of legal principles across various orders involving the same appellant, leading to a favorable outcome for the appellant in this case.
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