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TMI Blog2018 (3) TMI 495X X X X Extracts X X X X X X X X Extracts X X X X ..... even by the jurisdictional original authority in his findings with reference to denial of cenvat credit in another proceedings. For clearances made under Rule 4 (5) (a) due compliance has been reported. Return of waste and scrap or payment of duty on such waste and scrap is not part of such compliance. Appeal allowed - decided in favor of appellant. - E/777/2010 - A/40193/2018 - Dated:- 23 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duty liability on the scrap which gets generated at the job worker's premises while processing rough castings for the appellant. The appellant discharged duty on such scrap also. The Revenue entertained a view that the value declared on such duty payment is not correct. The appellant and the job worker are admittedly related parties. On this basis, proceedings were initiated against the appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by adopting 110% of cost for generation of such scrap. This is an error which cannot make them legally liable to pay Central Excise duty on the activity undertaken by the job worker, even if it is admitted that such job worker is related person . We note that the provisions of Rule 4 (5) (a) do not stipulate return or accountal of scrap generated at the job worker end. This much has been admitte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ' of the appellant. We find no legal basis to tax the appellant for waste and scrap which they did not manufacture. For clearances made under Rule 4 (5) (a) due compliance has been reported. Return of waste and scrap or payment of duty on such waste and scrap is not part of such compliance. In this connection, we also refer to the decision of the Tribunal in the case of Fag Engineering (I) L ..... X X X X Extracts X X X X X X X X Extracts X X X X
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