Excise Duty Liability on Scrap generated at Job Worker Premises

[Rakesh K Paliwal]

Dear All,

Pl let me know the judgments on above subject, when Principle Manufacture sent goods[ under rule 4(5)a] for fuhrer processing to job worker /processor , and get back after processing , which is add in final product on which duty paid by principle manufacturer, what is the treatment of scrap generated at job worker premises regarding duty liabilty ????

Regards

Rakesh Paliwal

AI Summary

Excise duty on scrap may be payable; scrap can be returned or sold by job worker subject to duty.
Excise duty on scrap generated at a job worker's premises may be payable; the scrap can be returned to the principal, cleared by the principal on realization value, or cleared/sold directly by the job worker on payment of excise. Appellate tribunal authorities indicate that waste and scrap need not be returned and that failure to return or obtain permission does not necessarily attract penalty where rules do not require such return or permission.