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2005 (6) TMI 184 - CESTAT, MUMBAIWaste and scrap - Dutiability - Whether as per the provisions of Rule 57AC(5)(a), the appellants are liable to pay the Central Excise duty on the scrap generated at their job worker's end (while processing inputs sent by the appellants) if the said scrap is not returned by the job worker to them? - HELD THAT:- The Central Excise duty cannot be demanded from the appellants since the job worker is the manufacturer of the said scrap, which is retained by him and sold in the market. The similar issue is answered in the case of M/s. International Tobacco Co. Ltd. v. CCE,[2003 (10) TMI 171 - CESTAT, NEW DELHI]. It is observed that no process of manufacturing taking place in respect of waste and scrap generated during the course of manufacture of cigarettes. Moreover, provision for dutiability of waste and scrap existed only in the erstwhile Central Excise Rules, 1944 (Rule 57F) and no such provision is there in the Cenvat Credit Rules, 2001. Duty is not leviable u/s 3 of the Central Excise Act, 1944. As the issue involved in this case is well-settled in the aforesaid case, these appeals are also disposed off on similar terms.
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