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2011 (9) TMI 139 - AT - Central ExciseRemoval of goods from the premises of Job worker - Permission under rule 4(6) of Cenvat Credit Rules, 2004 (CCR) - condition of return of waste and scrap - Held that:- In Fag Engineering case (2011 -TMI - 202740 - CESTAT, AHMEDABAD), it was held that no duty liability can be fastened upon the principal manufacturer in case of non-receipt of goods in terms of rule 4(5)(a) of the CENVAT Credit Rules, 2004 and the only consequence would be reversal of credit availed on the inputs in case goods on which credit has been taken and which has been allowed to be removed for job work is not brought back within the time period stipulated. The same legal position was held in the case of Rocket Engineering (2005 -TMI - 54305 - CESTAT, MUMBAI) and (2006 -TMI - 3721 - HIGH COURT BOMBAY). In the light of these judicial pronouncements, it has to be held that the principal manufacturer who has supplied the inputs as such or partially processed, to job workers for further processing cannot be fastened with the duty liability on the waste and scrap generated at the job workers premises and said liability falls on the job workers who have actually manufactured the waste and scrap. In case, the department wanted to recover duty on the waste and scrap, then the demand should have been raised on the job workers as has been held in Alucast Foundries.
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