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2023 (6) TMI 1194 - AT - Central ExciseReversal of pro-rata CENVAT Credit - short receipt of the processed inputs from the premises of the job workers - Rule 4(5)(a) of the CCR - HELD THAT:- The wastage/scrap generated in the course of job work, being less than 10% for PP Granules and 5% for LLDPE Granules was within the prescribed SION norms and the existence of such wastage/scrap in the process of conversion is provided for not only in the Work Orders but also in the permission conferred by the Jurisdictional Commissioner under Rule 4(6) of the CCR. Further, the claim of the Appellant that the job worker had discharged duty on the waste/scrap at the time of his clearance is also supported by job work Challans, excise Invoice besides the Order dated 9 June 2006 passed by the Assistant Commissioner in the connected proceedings. The issue involved herein is also covered by the decision of this Tribunal in EMCO LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, MUMBAI-III [2007 (11) TMI 108 - CESTAT, MUMBAI] where it was held that supplier can not be held liable on the ground that the worker had not discharged duty liability on impugned waste and scrap. Irrespective of whether the job worker had discharged the duty liability on the scrap generated at hisend, the duty liability cannot be fastened on the principal manufacturer/supplier of inputs. Appeal allowed.
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