2019 (4) TMI 1144

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....l, 2009 to Nov, 2009 cleared their inputs namely, iron and steel products to various job-workers under Rule 57AC(5)(a) of erstwhile Central Excise Rule, 1944 and Rule 4(5)(a) of CENVAT Credit Rules, 2002/2004. They were not received the exact quantity of the inputs sent to the job-workers and that certain quantity was lost due to generation of scrap and waste in the premises of the job-worker, Revenue proposed to deny proportionate CENVAT credit attributable to the waste and scrap generated in the premises of the job worker not received back along with job-worked goods. Periodical show-cause notices were issued for recovery of the duty with interest and penalty. On adjudication, the demands were confirmed with interest and penalty. Aggrieve....

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....: - Rule 57AC(5)(a) The CENVAT credit shall be allowed even if any inputs or capital goods as such or after being partially processed are sent to a job worker for further processing, testing, repair, re-conditioning or any other purpose, and it is established from the records, challans or memos or any other document produced by the assessee availing the CENVAT credit that the goods are received back in the factory within 180 days of their being sent to a job worker. If the inputs or the capital goods are not received back within 180 days, the manufacturer shall pay an amount equivalent to the CENVAT credit attributable to the inputs or capital goods by debiting the CENVAT credit or otherwise. However, the manufacturer can take the ....