2008 (5) TMI 90

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....006, The appellants are carrying on job work activity for their principal namely M/s. Wheels India Ltd. They were assessing the goods in terms of the Apex Court judgment rendered in the case of Ujagar Prints and clearing the final products to their principal M/s. Wheels India Ltd. who were availing Modvat credit on the duty paid goods cleared by the appellants. The value of scrap so generated was already added in the final products. The scrap was also cleared from the factory on payment of full duty. The appellant's contention is that the law during the period was that they were not required to add again the value of the scrap in the final products cleared to M/s. Wheels India Ltd. There were several rulings in their favour and therefore, t....

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....ndered by the Apex Court in the case of General Engineering Works v. CCE, Jaipur - 2007 (212) E.L.T. 295 (S.C.) would apply to the facts of this case, as the Apex Court has held that value of scrap sold to be taken into account as contract indicates that price (conversion charges) have been worked out on the basis with 5% wastage would be available to appellants which indicates that price has been affected by sale of scrap. 4. The learned counsel distinguishes this Apex Court judgment and reiterates that the subsequent order remanding the matter in the case of Mahindra Ugine Steel Co. Ltd. v. CCE (supra) to consider Cost Accountant Certificate applies to the facts of this case. 5. The learned SDR strongly relied on the decision rendered i....