2008 (7) TMI 811

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.... a manufacturer of bulk drugs has sent the inputs on which they have taken credit to the job worker for processing. At the time of sending the raw materials they reversed 10% value of the inputs towards credit taken by them. They have claimed to have received back the processed goods. After receipt of the processed goods they have taken the credit which they reversed at the time of sending the raw materials for job work. (b) The original authority held that they had produced certain by-products and waste which have not been received back from the job worker. Therefore, he demanded duty amounting to Rs. 17,96,000/- and also imposed equal amount of penalty. (c) Before the Commissioner (Appeals), the appellant pleaded that thei....

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....nsidered the submissions from both sides. The appellant has sent the inputs on which they have taken credit to the job worker for processing after reversing 10% value of the inputs towards credit taken by them. They have claimed to have received back the processed goods and taken back the credit which they reversed at the time of sending the raw materials for job work. We hold that the appellant was under an obligation to account for the entire inputs sent by them to the job worker for processing in the form of processed goods, by-products and waste. 6.2 If the by-products and waste had been cleared on payment of duty by the job worker as claimed by the appellant the same should have been reconciled by the appellant before the origi....