2017 (3) TMI 1442

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... basis and supplying the goods to M/s PTL, Chhapercheri Claiming job charges as Rs. 284/- per piece. The manufacture of the said goods on job work was being supplied by M/s PTL to the appellant. During the course of scrutiny of refund claim filed by the appellant, it was observed that during the job work process, scrap is generated which is retained by the appellant and cleared on payment of duty. It was felt that the relizable cost of such scrap retained by the appellant was not being included in the assessable value of goods manufactured on job work basis, therefore, the job work charges being added in raw material cost for the purpose of payment of duty are less to the tune of value of scrap retained by the appellant. Therefore, the appe....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... the appellant cleared scrap on payment of duty. He relied on the decision of this Tribunal in the case of Ad-Manum Packaging ltd. reported in 2016 (341) ELT 348 (Tri. Del.) wherein demand against the appellant is not sustainable. He also relied on the decision of this Tribunal in the case of Campco Chocolate Factory reported in 2010 (258) ELT (273) (Tri. Bang.). 4. On the other hand, the Ld. AR relied on the decision of this Tribunal in the case of Jay Engineering Works Ltd. reported in 1997 (93) ELT 492 (Tri. Mad.) which has been affirmed by the Hon'ble Apex Court to say that the Additional Consideration on account of scrap generated out of the raw materials supplied by customers for manufacture of goods on job work basis retained by t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e appellant is entitled to retain the scrap generated during the manufacturing process. It is also undisputed that the appellant clears the scrap so retained by them and discharges the duty liability on it. and this Tribunal observed as under: 6. Firstly, the Revenue authorities want to include the value of scrap in the value of the goods job worked, i.e., HDPE bags and demand duty. It is undisputed that the appellant has discharged the duty liability on the scrap and again, demanded duty by including the value in job work charges, which will amount to double taxation. 7. Secondly, an identical issue came up before the Bench of the Tribunal in the case of P.R. Rolling Mills Pvt. Ltd. - 2010 (249) E.L.T. 232 (Tribu....