TaxTMI 
TaxTMI 
2022 (1) TMI 759
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....lling under Chapters. 29,38 & 39 respectively of the First Schedule to the Central Excise Tariff Act, 1985 at their factory located at Jhagadia, Bharuch. In the course of Manufacture of the Ion- Exchange resins, Di-Ethyl Triamine Z (DETA) and Amine Z arise which are low in purity. In order to recover fresh DETA and fresh Amine Z of high purity from the DETA and Amine Z arising in the manufacturing process of Ion-Exchange resins, the appellants are sending the DETA and Amine Z for distillation to job workers in addition to other processes for which other Chemicals are sent to the job workers. The appellants are duly following the procedure laid down under rule 4 (5)(a) Central Excise Rules,2004 with respect to Cenvat Credit availed on such C....
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....y was paid on this entire quantity of 2,29,794 kgs although the same contained water base also. The pure material of chemical in such a total quantity of 2,29,794 kgs was 1,08,927 kgs ( approximately 47%) only. As per the agreement, the quantity weighing 93,982 kgs (86.28% of input quantities sent) was returned within 180 days to the appellant. The remaining quantity 14,945 kgs was waste material which mainly consists of contaminated water. If at no point of time for inputs returned by the job worker for more than 180 days the material not returned back is only wastage which remains after the process of inputs. 1.3 The CERA audit conducted by the Central Excise Department where an objection was raised regarding receipt of such quantities....
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....layed receipt of the inputs sent to the job workers. Out of the total demand of 20,10,576/- the demand of 19,78,247/- on ground of delayed receipt of inputs is factually and legally incorrect. He submits that the inputs which were sent for job work needs to be stored and transported in a water base. Due to the water base, the concentration of these chemicals when sent to the job worker is only 47% (approx.) and the rest is water. The same can be verified from the laboratory test report marked and enclosed with the appeal. These chemicals along with the water base were sent to the job worker for distillation and recovery of pure DETA and Amine Z. As per the agreement with the job worker, the job worker is required to return a yield of 85%(+/....
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....ved after 180 days. Thus, the demand of Rs. 19, 78,247/- is revenue neutral in nature and is not maintainable. 2.3 As regard the remaining demand of Rs. 2,60,886/- on the ground of short receipt of inputs from job workers even after 180 days , is not maintainable in as much as the same pertains to process loss at the end of the job worker. He submits that the appellant had sent 2,51,813 Kgs of material (including water base) and received back 2,48,038 Kgs of material (including water base). Thus, a shortage of 3775 Kgs was observed and Cenvat Credit of Rs. 2,60,886/- was demanded on such alleged short receipt of the inputs. He submits that such a shortage amounts to 2% of the total material quantity supplied to such job workers. The same....
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....ai-2019 (4) TMI 1144-CESTAT, Mumbai • Amforge Industries Ltd. v. CCE-2021 (375) ELT 358 (T) • CCE v. Rocket Engineering Corporation Ltd. -2008 (223) ELT 347 (Bom.) • CCE v. Bharat Radiators Ltd.-2002 (148) ELT 1101 (T) • Voltamp Transformers Ltd. v. CCE-2015 (329) ELT 380 (T) • Rollex Electro Products P. Ltd. v. CCE-2016 (338) ELT 736 (T) • Asianol Lunricants Ltd. v. CCE-2018 (2) TMI 10- CESTAT Kolkata • BEML Ltd v. CCE-2021 (8) TMI 170-CESTAT Bangalore • Zenith Machine Tools Pvt. Ltd. v. CCE-2010 (255) ELT 83 (T) • Uttam Sucrotech Ltd v. CCE-2018 (7) TMI 1203-CESTAT • Tata Motors Ltd v. CCE-2011 (264) ELT 385 (T....
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....d back though after 180 days but the same was in the form of wastage. In fact the job worker is not required to return the wastage material which is predominantly the contaminated water therefore, it cannot be said that the appellant has not received back the processed goods within 180 days. In this fact the appellant has received back the processed goods within 180 days therefore, the demand on the ground that the appellant has not received the goods within 180 days is not sustainable. 4.1 Moreover, even if it is assumed that the subsequently received material after 180 days is part of the processed goods even then only due to delay in receipt Cenvat credit cannot be denied as the appellant was entitled for Cenvat credit as and when the....