2016 (6) TMI 1291 - AT - Central Excise

Processing loss - demand of duty - Held that - the quantum of loss at job-worker s premises is miniscule and in order to less than 1%. Such losses are reasonable possible in the process like pulverization and conversion of plastic into PP bags - there is no justification for the demand - appeal allowed - decided in favor of appellant.

Summary

The Appellate Tribunal CESTAT Mumbai ruled in favor of the appellant, M/s. Supreme Petrochem Ltd., in a case involving duty demand due to quantity difference in job-work. The tribunal found the loss at the job-worker's premises to be minimal (0.5% to 0.8%) and attributed it to handling loss. The demand of &8377; 1,05,284/- was set aside, and the appeal was allowed on 03.06.2016.