9911796707
TMI Blog2006 (1) TMI 354X X X X Extracts X X X X X X X X Extracts X X X X ..... ere reversing the credit of the rate of 3% to 5% on a total receipt of steel for the convenience of accounts procedure. Their contention is with regard to recovery of material cost on rejected quantity, they received from job worker. They subjected them inspection/check at factory and in case if it is found defective due to job work, they allowed 3% as allowance and in excess of 3% allowance, recovery is made towards cost of materials and no recovery towards Excise Duty and Sales Tax. They contend that the recovery cost has been fixed during 1994 based on the cost of materials during the relevant period and they have not received recovery stock till date. Whatever raw material cost recovered from the job worker in excess of permitted level ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ispat Nigam Ltd. v. CCE - Final Order No. 750/2005 dated 5-5-2005, the Tribunal, on like facts and circumstances of the case, examined the issue and held in paras 7 and 8 as follows :- 7. On a careful consideration of the submissions, we find great force in the submissions made by the appellants. Admittedly, the duty has been paid by the conversion agents/job workers in terms of provisions of HRSMACD Rules. In terms of the judgments cited by the counsel, the amounts cannot be demanded against the appellants. The finding portion recorded in the case of CCE v. Perfect Refractories (supra) is reproduced herein below :- The assessee is a small scale manufacturer. It recovered certain amounts describing them as surcharge in addition to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pay duty under the Act and who has collected any amount in excess of the duty assessed or determined and paid on any excisable goods is required to pay the amount so collected to the credit of the Central Govt. In the present case, the conversion agents/job workers have paid duty in terms of the said HRSMACD Rules and there is no liability arising against the appellants and the department cannot proceed to recover the amount under Section 11D of the Act. The appellants contention holds merit and respectfully following the ratio of the citations referred to the impugned order is set aside and the appeal is allowed with consequential relief, if any. 5. We find that the ratio of both the above judgments clearly apply to the facts of the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X
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