2024 (10) TMI 1057

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....ker returned the total weight which is equivalent 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 vie....

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....rs for drawing into copper wires and certain waste is generated. It is claim that there 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 h....

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....on which credit has been taken and which has been allowed to be removed for job worked is not 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 t....

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....ere is no finding by the authorities to the effect that the loss occurred was unreasonable and both the authorities have also verified 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 generat....