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TMI Blog2019 (3) TMI 1785X X X X Extracts X X X X X X X X Extracts X X X X ..... b work to the appellant and the duty thereon was not paid by the appellant - period from September 2011 to March 2012 - Rule 4(5) of the CENVAT Credit Rules, 2004 - HELD THAT:- The appellant is not the manufacturer of the waste and scrap and therefore, there is no liability on the appellant to pay the duty on the waste and scrap manufactured at the job worker s end. Further, the provision of Rule ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 4(5) of the CENVAT Credit Rules, 2004 to job workers. 2.1 During verification of records for the period from September 2011 to March 2012, it was found that the job workers did not return the scrap generated during the process of job work to the appellant and the duty thereon was not paid by the appellant. 2.2 A Show Cause Notice was issued proposing to demand ₹ 2,95,859/- being the duty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relation to the manufacture of final products in the factory of the principal manufacturer. In the instant case, the scrap generated at the job worker's end are not returned to the principal manufacturer (appellant herein) and the duty thereon is also not discharged by the appellant, which, according to the Department is contravention of Rule 6 and 8 of the Central Excise Rules, 2002. 3.2 The ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Final Orders stated supra. The relevant portion of the Final Order No. 41307/2017 dated 26.07.2017 is reproduced as under : "2.1 The lower authorities have confirmed the demand of ₹ 38,034/- along with interest and imposition of penalty of ₹ 5,000/-, on the ground that it is the principal manufacturer who is required to pay duty on the waste and scrap arising in the job workers f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the above decision of the Tribunal in the case of Rocket Engineering Corporation Ltd. (supra) and as affirmed by the Hon'ble High Court of Mumbai, the demand was set aside. In as much as the issue is decided, I set aside the impugned order and allow the appeal the appeal with consequential relief to the appellant." 7. From the foregoing discussions, we hold that the duty demand cannot sustain. T ..... X X X X Extracts X X X X X X X X Extracts X X X X
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