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TMI Blog2024 (10) TMI 1057X X X X Extracts X X X X X X X X Extracts X X X X ..... t was held that ' In the present case, the loss on account of waste and scrap is only 2% which has not been argued to be unreasonable by the Revenue. It is also not the case of the Revenue that waste and scrap generated has been clandestinely removed or that no waste and scrap is generated at all in the processes undertaken by the Job worker of the appellant. There is also no binding clause in Rule 4(5)(a) of CENVAT Credit Rules, 2004 that any loss of inputs by generation of waste and scrap has to be compensated by reversing equivalent credit taken on the virgin metal.' The impugned order is set aside and appeal is allowed. - HON'BLE MR. RAMESH NAIR , MEMBER ( JUDICIAL ) And HON'BLE MR. C. L. MAHAR , MEMBER ( TECHNICAL ) S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f. One of the decision which referred to earlier decision in the appellant s case is reproduced below : 4. I have carefully considered the submission made by both sides and perused the records. I find that even though the job worker has returned the equal quantity of the goods for the reason that there is an addition of paper which was used for insulation purpose. As regard the process loss it is an invisible loss which arises during the course of job work, the same cannot be charged to the duty. The issue is no longer res-integra as per the decision of this Tribunal in the appellants own case which is reproduced as under: 4. We have considered the rival submissions. We find identical issue has been decided earlier by the tribunal vide orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in rule 8 of the said rules. The liability to pay excise duty and the manner of payment of duty are governed by Rules 4 and 8 of the Central Excise Rules. They are not, in any way, altered or changed by the CENVAT Credit Rules, 2004 which deals with allowing of CENVAT Credit. The CENVAT Credit Rules, 2004 does not create any liability to pay excise duty under any of its provisions. It provides for reversal of credit in case the credit has been taken wrongly. Therefore, under rule 4(6) of CENVAT Credit Rules, 2004 only such conditions can be prescribed which are in conformity with Rules 4 and 8 of the Central Excise Rules, 2002 and not conditions which are repugnant or contrary to the provisions of these rules. In Fag Engineering case (supr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance with the law as has been laid down by the Tribunal in the case of Bharat Radiators Ltd (supra), Vema Metal Conductors Ltd (supra), Tata Motors Ltd (supra). I find that the judgment of the Tribunal in the case of Tata Motors Ltd (supra) is a Division Bench judgment and they have relied upon the decision in the case of Bharat Radiators Ltd and have recorded in Para 7 the following findings : - 7. We find that Tribunal in the case of Bharat Radiators (supra) held that the credit cannot be denied in respect of the process loss at the hand of job worker. In view of the above we find as the Revenue has not denied the fact that the quantity which was found short on account of processing hence the demand is not sustainable hence set aside. 11. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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