TaxTMI 
TaxTMI 
2023 (3) TMI 434
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....ent of duty. Appellant also availed cenvat credit while paying duties on the finished product. On verification of records, it was found that appellant had converted steel scrap into angles and channels through job workers for which purpose they removed scrap under Rule 4 (5) (a) of Cenvat Credit Rules, 2004 to the job worker. The scrap so sent to the job worker was returned to the appellant as angles and channels. While so returning the goods to the appellant, the job worker discharged duty liability on angles and channels. The Department was of the view that the appellant ought to have paid duty on scrap while removing them to the job worker. Show cause notice 14.06.2012 was issued proposing inter alia to recover an amount of Rs.1,10,221/-....
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....ng the process of manufacture and for converting the same into aluminium ingots and return thereof to the principal manufacturer. He prayed that the appeal may be allowed. 5. Ld. A.R Ms. K.Komathi supported the findings in the impugned order. 6. The issue to be considered is whether the appellant is liable to pay duty on the scrap that has been sent to the job workers for manufacture of intermediate products such as angles and channels. It is not disputed that removal of the scrap to the job worker was done as per Rule 4 (5) (a) of Cenvat Credit Rules, 2002. So also, it is not disputed that the job worker cleared intermediate goods in the nature of angles and channels to the appellant by paying duty and raising invoices. The Board in its ....
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....removal of the scrap, hence scrap must be removed to the job worker only on payment of duty. 5. On this ground the demand was confirmed against the appellants. The Commissioner (Appeals)'s order reiterates the findings of the adjudicating authority. 6. During the hearing, the appellants placed reliance on Board's Circular No. 15/89. The said circular permits the manufacture to send the scrap to a job worker even under Rule 57F(2). From the above it is apparent that, despatch of aluminium scrap can either be under Rule 57F(2) (subject to compliance of procedure as prescribed there under) or also could be under Rule 57F(5) (which is specifically applicable to removal of scrap), on payment of duty. The manufacturer has an option to wor....