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TMI Blog2017 (12) TMI 617X X X X Extracts X X X X X X X X Extracts X X X X ..... ntimate that they are sending the goods to a job worker under N/N. 214/86-CE, it is not in dispute that waste and scrap that were sent out to Kanishk Steel Industries were done so only on delivery notes and the converted products had also been received back under invoices accounted for and utilized in further manufacture of final products. There is thus no allegation that the waste and scrap have been diverted or clandestinely sold. In any case, the broad procedural requirements of N/N. 214/86-CE, though not opted for, have been largely followed. The waste and scrap could at best be considered as captively consumed goods, the value of which is definitely not required to be excluded under the SSI exemption notification - the value of reus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... OIA No. Duty (Rs.) Penalty(Rs.) 1. E/469/2010 06/2009 dt. 10.07.2009 66/2010 dt. 27.4.2010 2,46,351 2,46,351/- 2. E/470/2010 07/2009 dt. 13.07.2009 68/2010 dt. 27.4.2010 1,08,188 1,08,188/- 3. E/533/2010 03/2009 dt. 18.8.2009 79/2010 dt. 28.5.2010 47,592 47,592/- Hence these appeals. 2. On 03.11.2017, when the matter came up for hearing, on be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... T. 503 (Tri. Mumbai) (2) Shakti Wire Products Vs. CCE, Mumbai - 2009 (241) E.L.T. 223 (Tri. Mumbai) (vii) As there is no duty liability, on such clearances the interest and penalty imposed ought not to be levied. 3. On the other hand, Ld. A.R. Shri K.P. Muralidharan supports the impugned order. 4.1 Heard both sides and have gone through the facts. 4.2 From the records, we find that the said waste and scrap had been removed by appellant to Kanishk Steel Industries against delivery notes. The said quantities of scrap had been converted by the said Kanishk Steel into angles and channels and returned to appellant. The returned items were taken into stock. Also, the converted materials were received from the above company ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clearances shall not be taken into account, namely :- (a) .... ..... .... (b) clearances of the specified goods which are used as inputs for further manufacture of any specified goods within the factory of production of the specified goods: (c) .... ..... .... Therefore, when the goods recycled captively, the value will not form a part of the aggregate value. 4.5 Even when the intended goods are sent to a job worker for conversion into angles for further usage in the manufacture, the value thereof will also not form part of the aggregate value. This is derived from the observation of the Larger Bench of CESTAT in the case of Wyeth Laboratories Ltd. Vs CCE Bombay - 2000 (120) ELT 218 (Tri.-LB) wherein the following ..... X X X X Extracts X X X X X X X X Extracts X X X X
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