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TMI Blog2023 (11) TMI 160X X X X Extracts X X X X X X X X Extracts X X X X ..... f raw materials was in dispute therein and not of conversion charges not reflecting the true consideration; hence the corollary of establishing that it was depressed. There is no finding of such nature in the impugned order, in the appeal of jurisdictional Commissioner of Central Excise before the first appellate authority or in the show cause notice. Therefore, reliance placed in the impugned order on the said decision is not appropriate; the outcome therein is, thus, jeopardized. Here too, it is not in dispute that the landed cost of raw materials is not doubted and that the impugned scrap has been generated from such raw material. That value, having been included once, is not required to added once again for assessment to duty. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellate authority, and by drawing upon the decisions of the Hon ble Supreme Court in General Engineering Works v. Commissioner of Central Excise, Jaipur [2007 (212) ELT 295 (SC)] and in Commissioner v. Lloyd Steel Industries [2007 (213) ELT 339 (SC)], that 10. Thus it is clear that in cases where the job-worker and the manufacturer are following the procedure under Rule 4(5)(a) of the Cenvat Credit Rules, 2004, the intermediate products at the hands of the job worker are not liable to duty, and hence the question of adding the value of scrap does not arise, as laid down by the Honourable Apex Court s decision in the case of International Auto Ltd. 11. But, in cases where the burden of discharging duty liability of the processed goo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cessed goods. Hence, it is logical to conclude that the conversion charge was depressed to the extent of the value of the scrap retained. in relation to clearances during 2009-10. 3. We have heard Learned Counsel for appellant and Learned Authorized Representative at length. Learned Counsel for appellant contests the finding with the plea that the decision in re General Engineering Works is applicable only when central excise authorities are able to evince concurrent depression of conversion charge in the transaction. It was further contended that, on the admitted discharge of duty on landed cost of raw materials and conversion charges , there can be assertion of duty liability on scrap sold by them in the guise of resort to a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in dispute therein and not of conversion charges not reflecting the true consideration; hence the corollary of establishing that it was depressed. There is no finding of such nature in the impugned order, in the appeal of jurisdictional Commissioner of Central Excise before the first appellate authority or in the show cause notice. Therefore, reliance placed in the impugned order on the said decision is not appropriate; the outcome therein is, thus, jeopardized. 5. An identical issue had come before the Tribunal and, in Campco Chocolate Factory v. Commissioner of Central Excise, Mangalore [2018 (258) ELT 273 (Tri-Bang)], it was held that 8. We have carefully perused the case records and considered the submissions of both sides. We f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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