2006 (1) TMI 354

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....nts had received 3% to 5% cost towards waste and scrap. They were reversing the credit of the rate of 3% to 5% on a total receipt of steel for the convenience of accounts procedure. Their contention is with regard to recovery of material cost on rejected quantity, they received from job worker. They subjected them inspection/check at factory and in case if it is found defective due to job work, they allowed 3% as allowance and in excess of 3% allowance, recovery is made towards cost of materials and no recovery towards Excise Duty and Sales Tax. They contend that the recovery cost has been fixed during 1994 based on the cost of materials during the relevant period and they have not received recovery stock till date. Whatever raw material co....

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....tion 11D of Central Excise Act is not applicable. In the case of M/s. Rashtriya Ispat Nigam Ltd. v. CCE - Final Order No. 750/2005 dated 5-5-2005, the Tribunal, on like facts and circumstances of the case, examined the issue and held in paras 7 and 8 as follows :- "7. On a careful consideration of the submissions, we find great force in the submissions made by the appellants. Admittedly, the duty has been paid by the conversion agents/job workers in terms of provisions of HRSMACD Rules. In terms of the judgments cited by the counsel, the amounts cannot be demanded against the appellants. The finding portion recorded in the case of CCE v. Perfect Refractories (supra) is reproduced herein below  :- "The assessee is a small sca....