2009 (3) TMI 181

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....cess of manufacture of their final product, remnants of copper generate. These remnants are further sent by them to their job worker for conversion into Copper bar in terms of provision of Rule 4(5)(a) of Cenvat Credit Rules, 2004, under job work challans, and returned. 4. During the scrutiny of the monthly records, the Range Superintendent pointed out discrepancy that, the scrap being final product is not entitled to be cleared in terms of Rule 4(5)(a) of Cenvat Credit Rules, 2004, and that the same needed to be cleared on payment of duty. 5. Based on the above findings, a Show Cause Notice dated 25-10-2005 was served on the Appellants, for denial of the benefit of Rule 4(5)(a) of Cenvat Credit Rules, 2004, in respect of clearance of scr....

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....tiable when sold, it cannot be said that new excisable product has been manufactured. They do not come out as a new excisable product but the same only emerges out of the manufacturing process. As the clearance is made for the specific purpose i.e. for conversion, and not being a sale, they are eligible for the provision of Rule 4(5)(a) of Cenvat Credit Rules, 2004. 9. Five Member Bench of the Tribunal in the case of Wyeth Laboratories Ltd. v. Collector of Central Excise, Bombay - 2000 (120) E.L.T. 218 (Tri-LB) has decided the issue of clearance of scrap for job work. In the said case, it has been held as under :- "Word 'waste' in Rule 57F(4) to be restricted to such converted inputs which are not desired to be used any further for use, i....

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....sion of generated scrap for any other purpose other than reconversion. It is not in dispute that in the present case, the scrap cleared by the appellants under job work challan has been returned in the form of ingots and properly accounted for. 11. The Tribunal in the case of Narmada Plastics (P) Ltd. v. Commissioner of Central Excise, Bhopal reported in 2004 (178) E.L.T. 806 (Tri-Del.) held : Cenvat/Modvat - Waste and scrap, removal of, for reprocessing and return - Rule 57F of erstwhile Central Excise Rules, 1944 - Benefit of Rule 57F(3) now Rule 4(5)(a) ibid not deniable if after use of plastic granules in manufacture of HDPE/PP Fabrics, left over material sent out under said Rule, for being reprocessed into granules and on return to b....