TaxTMI 
TaxTMI 
2024 (10) TMI 1057
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....ivalent to total input supplied by the appellant. The case of the department is that in the process there is loss and on such quantity of process loss the duty is required to be paid. 2. Shri Dhaval Shah learned counsel appearing on behalf of the appellant at the outset submits that in the present appeal it is a periodical show cause notice involved on the same issue and for the earlier period this tribunal decided this matter in the appellant's own case vide following orders: (i) Voltamp Transformers Ltd Vs. CCE & ST-Vadodara-II 2021 (11) TMI 597 - CESTAT Ahmedabad (ii) Voltamp Transformers Ltd Vs. CCE & ST-Vadodara-II 2023 (5) TMI 598-CESTAT Ahmedabad He submits that in view of the above concurrent view of the bench in the appellant....
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....re is about 2% loss in the process of drawing wires either burning loss or physical waste. It is the case of the appellant that under the provisions of Rule 4(5)(a) of CENVAT Credit Rules, 2004, it is not obligatory to bring back the waste and scrap generated at the job worker's end. They have relied upon CESTAT Mumbai's judgment in the case of Mahindra Hinoday Industries Ltd. Vs. CCE Pune (supra). In Para 7of this judgment, following has been held: 7. A reading of the rule clearly indicated that the Asst. Commissioner can impose conditions in the interest of revenue including the manner in which duty, if leviable, is to be paid. The Commissioner has prescribed the manner in which the duty liability on the principal manufacturer rather th....
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....t brought back within the time period stipulated. The same legal position was held in the case of Rocket Engineering decided by this Tribunal as also by the Hon'ble High Court of Bombay. In the light of these judicial pronouncements, It has to be held that the principle manufacturer who has supplied the inputs as such or partially processed job workers for further processing cannot be fastened with the duty liability on the waste and scrap generated at the job workers primises and said liability false on the job workers who have actually manufactured the waste and scrap. In case, the department wanted to recover duty on the waste and scra, then the demand should have been raised on job workers as has been held in Alucast Foundries (Supr....
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....erified that the loss claimed by appellant was based on the records and it would not amount to clandestine removal of goods. Even otherwise, there was clear admission that the goods were clandestinely removed. Since this being a finding of fact, we are of the view that no substantial question of law arises out of the order of the CESTAT." 6. In the present case, the loss on account of waste and scrap is only 2% which has not been argued to be unreasonable by the Revenue. It is also not the case of the Revenue that waste and scrap generated has been clandestinely removed or that no waste and scrap is generated at all in the processes undertaken by the Job worker of the appellant. There is also no binding clause in Rule 4(5)(a) of CENVAT Cr....