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TMI Blog2008 (6) TMI 138X X X X Extracts X X X X X X X X Extracts X X X X ..... e hollow pipes portion - duty was required to be paid by the job worker, and not by appellants - demand on account of shortages noticed in the scrap is upheld - Appeal is partly allowed - E/880/2003-Mum - A/493/2008-WZB/C-II/ (EB) - Dated:- 9-6-2008 - S/Shri M.V. Ravindran, Member (J) and K.K. Agarwal, Member (T) Shri S. Naraynnan, Advocate, for the Appellant. Shri N.A. Sayyed, JDR, fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... who is responsible being actual manufacturer and if at all demand has to be made, it is on the job worker and not on the appellants. It was submitted that the department's contention that the dies come into existence at their premises only, when the end plates are fitted on the hollow pipes is incorrect, as dies consists of two parts one hollow pipe on which groves were made by the job worker as p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not out of physical counting and being in the ratio of 1% cannot be considered excessive as having been removed clandestinely. Even if in the worst situation is admitted that such scrap was removed without accountal, it is their plea that they were purchasing both modvatable and non-modvatablc inputs and based on the proportion between modvatable and non-modvatable scrap, the actual duty liable t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the manufacture has taken place at the appellant's premises when the end plates are fitted on the hollow pipes portion. When end plates has to be removed after every operation, it has to be supplied separately and cannot be fitted and such mere fitting cannot amount to manufacture. The duty in this case was therefore required to be paid by the job worker and cannot be demanded from the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itted that the shortages was in respect of bales found short as compared to those reflected in the receipt account. Obviously credit could not have been taken on such material being short. In view of this we uphold the demand of Rs. 2,25,783/- and penalty of Rs. 2,37,260/- imposed under Rule 57-I as credit was taken without receipt of the inputs and this fact came to notice only when the same was ..... X X X X Extracts X X X X X X X X Extracts X X X X
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