2017 (6) TMI 800

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.... 2. The brief facts of the present case are that the respondent is a manufacturer of electrical stampings falling under Chapter 83 & 85 of the First Schedule of the Central Excise Tariff Act, 1985. In addition to the manufacturing and clearance of their products, the respondent/assessee also engaged in the manufacture of excisable goods on job work basis. The said job worked excisable goods are cleared on payment of duty by taking into consideration the landed cost of the raw material and the conversion cost. However the waste and scrap generated during the course of such job work were retained by the job worker and the same was sold on payment of duty and the sale proceeds were also retained by the respondent. The respondent were issued ....

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....o the law and is not sustainable and is liable to be set aside on the ground that the learned Commissioner(Appeals) has not appreciated that the value of the scrap arisen during the manufacture of finished goods retained and sold by the job worker on payment of appropriate duty is includable in the assessable value of the finished goods. He further submitted that the Commissioner(Appeals) has wrongly relied upon the case laws viz. Lloyds Steels Inds. Ltd. Vs. CCE, Nagpur [2003(163) ELT 128 (Tri. Mumbai)] and Mahindra Ugine Steel Co. Ltd. Vs. CCE, Pune [2003(157) ELT 435 (Tri. Mumbai)]. He further submitted that the full conversion charges are required to be loaded on the costing of raw material at job worker s end to arrive at the correct a....