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TMI Blog2011 (7) TMI 546X X X X Extracts X X X X X X X X Extracts X X X X ..... silent on disposal of waste & scrap - Following the decision of International Tobacco Company Ltd.[2003 (10) TMI 171 - CESTAT, NEW DELHI] since job worker is the manufacturer of such scrap, the demand & penalty on the appellants on this score cannot be sustained - Decided in favour of assessee. Duty confirmation on the lead scrap sent to the job worker for conversion into lead ingots - The appellate authority has relied upon the case of Wyeth Laboratories Ltd. Vs. CCE [2000 (7) TMI 109 - CEGAT, NEW DELHI] wherein it was held that the scrap generated in the manufacturer s factory can be sent to the job worker for carrying out the processes in terms of the Erstwhile Provisions of Rule 57F (4) - Decided in favour of assessee. - E/430 to 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed during the course of separation of rejected batteries was not being returned by the job workers. 4. Further lead scrap was being generated in the respondent s factory during the course of manufacture of automobile batteries. The said lead scrap was being cleared by them to their job workers for conversion of the same into lead ingots under the cover of challans issued in terms of Rule 4(5) of Cenvat Credit Rules, 2002. 5. A show cause notice dated 12.04.04 was issued to the respondents proposing confirmation of demand of duty of Rs.3,44,131/- leviable in respect of plastic containers and lead scrap generated in the job worker s factory during the period April 2003 to September 2003 and not returned by them to the respondent. Furt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d is completely destroyed. Thus the remanent plastic container lead do not arise out of any manufacturing process. It is settled law that waste scrap arising during manufacturing process is liable to duty to exercise. The Hon ble Supreme Court of India in case of M/s. West Coast Industries Gas Ltd. 2003 (155) ELT 11 (SC) relying on the Hon ble Tribunal order in case of IOL V/s. CCE 1993 (68) ELT 624 (T) held that no duty can be demanded on empty drums/barrel as they cannot be termed as waste arising out of manufacturing process. I thus hold that remanent plastic container lead which is sold by job worker as waste scrap cannot be charged to exercise duty as manufactured waste scrap. Hence I set aside the demand of so called waste ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny infirmity in the view taken by Commissioner (Appeals), who has dealt with the issue at great length and has come to a justifiable finding by following the precedent decisions. 9. As regards duty confirmation on the lead scrap sent to the job worker for conversion into lead ingots, we find that appellate authority has relied upon the Larger Bench decision of the Tribunal in the case of Wyeth Laboratories Ltd. Vs. CCE Bombay 2000 (120) ELT 218 (Tri. LB) wherein it was held that the scrap generated in the manufacturer s factory can be sent to the job worker for carrying out the processes in terms of the Erstwhile Provisions of Rule 57F (4). The said part of the order does not stand impugned by the Revenue in as much as we find no ground ..... X X X X Extracts X X X X X X X X Extracts X X X X
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