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TMI BlogNo Excise duty on Scrap generated at Job worker’s end, when duty is discharged by principal manufacturerX X X X Extracts X X X X X X X X Extracts X X X X ..... No Excise duty on Scrap generated at Job worker’s end, when duty is discharged by principal manufacturer - By: - CA Bimal Jain - Central Excise - Dated:- 9-8-2022 - - The CESTAT, Chennai in the matter of M/S. UNIMECH INDUSTRIES PRIVATE LIMITED VERSUS COMMISSIONER OF CENTRAL EXCISE, COIMBATORE [2022 (6) TMI 537 - CESTAT CHENNAI] has held that the value of scrap arising during the pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cess of manufacture re by the job worker is not included in the value of the goods cleared by the job worker to the principal manufacturer for the purpose of levying excise duty. Facts: M/s. Unimech Industries Private Limited ( the Appellant ) has engaged in the converting cast articles into tractor parts on job work basis to M/s. TAFE Ltd ( the principal ) . Th e appeal h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as been filed by the Appellant against the order-in-Appeal ( the impugned order ) passed by the Commissioner (Appeals), Central Excise, Customs and Service Tax, confirming the duty and penalty imposed on the value of the scrap generated during the course of manufacturing of tractor parts on the job work basis. The A ppellant contented that he is a job worker and receiving r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aw materials from the principal and had paid excise duty based on the value determined on cost construction basis. During the course of his business, certain waste and scrap of metals is generated on which the appropriated duty has been paid by the Appellant. The department objected the method of valuation adopted by the Appellant alleging that the value of scrap which was sold on payment of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Excise duty has to be included in the value of parts cleared to the principal. Issue: Whether the value of scrap arising during the process of manufacturing by the Appellant is includible in the value of the goods cleared by him to the principal manufacturer? Held: The CESTAT, Chennai in M/S. UNIMECH INDUSTRIES PRIVATE LIMITED VERSUS COMMISSIONER OF CENTRAL EXCISE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , COIMBATORE [2022 (6) TMI 537 - CESTAT CHENNAI] held as follows: Relied upon, the judgement of CESTAT, B angalore in the case of PR. ROLLING MILLS PVT. LTD. VERSUS COMMISSIONER OF C. EX., TIRUPATHI [2009 (3) TMI 444 - CESTAT, BANGALORE] wherein it was held that the value of scrap need not be included in the assessable value of the products manufactured by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Appellant. Noted that, while estimating the value of the goods cleared to the principal, the Appellant has taken the value of the entire raw materials received by them. The scrap generated during the process of manufacture has been cleared by them on payment of appropriate duty. Stated that, the scrap is generated after the process of manufacture and the same is not includible in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessable value of the goods cleared by the job worker to the principal. Held that, impugned orders are set aside. (Author can be reached at [email protected] ) - - Scholarly articles for knowledge sharing authors experts professionals Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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