2015 (10) TMI 1691

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....s. Atlas Pallet Industries and M/s. Vinayak Chemicals for conversion into Potash Pallets. That during conversion of Caustic Potash Flakes into Potash Pallets there is a processing loss of around 10% which is not received back by the appellant. It was her case that the processing loss of 10% is genuine and no CENVAT credit pertaining to processing loss is recoverable from the appellant. She relied upon the case law of Voltamp Transformer Limited vs. CCE, Vadodara - [2014 (302) ELT 586 (Tri. Ahmd.). It was also the case of the appellant that correspondence under letter dated 11.4.2007 was exchanged between the job worker M/s. Vinayak Chemicals and the appellant to the extent that there will be a processing loss of 10%. With respect to imposit....

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....ved in the present proceedings is whether cenvat credit on certain inputs, sent by the appellant to the job workers under Rule 4(5) (a) of the Cenvat Credit Rules, 2004, is admissible to the appellant or not. Appellant is sending Caustic Potash Flakes for purification to the two job workers M/s. Vinayak Chemicals and M/s. Atlas Pallet Industries. In the case of job worker M/s. Atlas Pallet Industries, 100% yield of Potash Pallets is the result whereas in the case of M/s. Vinayak Chemicals, a processing loss of 10% is claimed in the yield. Appellant has relied upon the case law of Voltmap Transformers Limited vs. CCE, Vadodara (supra), passed by this Bench wherein it is held that 2% waste and scrap generated at the job worker's premises will....