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TMI Blog2019 (4) TMI 1144X X X X Extracts X X X X X X X X Extracts X X X X ..... namely, iron and steel products to various job-workers under Rule 57AC(5)(a) of erstwhile Central Excise Rule, 1944 and Rule 4(5)(a) of CENVAT Credit Rules, 2002/2004. They were not received the exact quantity of the inputs sent to the job-workers and that certain quantity was lost due to generation of scrap and waste in the premises of the job-worker, Revenue proposed to deny proportionate CENVAT credit attributable to the waste and scrap generated in the premises of the job worker not received back along with job-worked goods. Periodical show-cause notices were issued for recovery of the duty with interest and penalty. On adjudication, the demands were confirmed with interest and penalty. Aggrieved by the said order, they filed an appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e allowed even if any inputs or capital goods as such or after being partially processed are sent to a job worker for further processing, testing, repair, re-conditioning or any other purpose, and it is established from the records, challans or memos or any other document produced by the assessee availing the CENVAT credit that the goods are received back in the factory within 180 days of their being sent to a job worker. If the inputs or the capital goods are not received back within 180 days, the manufacturer shall pay an amount equivalent to the CENVAT credit attributable to the inputs or capital goods by debiting the CENVAT credit or otherwise. However, the manufacturer can take the CENVAT credit again when the inputs or capital goods a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under the said Rules there is no mention about return of the waste and scrap, if any, generated in the premises of the job-worker. In the present case, the appellant has submitted that during the job-work process certain quantity of scrap is generated and the process loss being the difference in the quantity of the inputs sent and the quantity of job-worked goods received back after processing in the job-worker premises. Since the provision relating to return of waste and scrap generated in the premises has been deleted in the year 2000 and under the new provisions, no such stipulation is mentioned, therefore, it can safely inferred that CENVAT credit cannot be disallowed, on the quantity attributed to waste and scrap generated in the premi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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