2018 (5) TMI 2182 - AT - Central Excise

Levy of Excise Duty on scrap generated during job work - Department was of the view that the job workers neither returned the scrap generated during the process of job work to the Principal manufacturer nor discharged the duty liability - HELD THAT - The issue stands covered in favour of the appellants by the decisions in the appellant s own case vide Final Order No. 42779/17 dated 02.11.2017 Final Order No. 41315/17 dated 25.07.2017 and Final Order No. 40604/2017 dated 26.07.2017. Following the same the demand cannot sustain. The impugned orders are set aside - appeal allowed.

Summary

The Appellate Tribunal CESTAT CHENNAI ruled in favor of the appellants, who were manufacturers of Deisel engines, in a case involving duty liability on scrap generated during job work. The tribunal found that the issue was covered in favor of the appellants based on previous decisions and set aside the demand for duty, interest, and penalty imposed by the original authority. The appeals were allowed with consequential reliefs.