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2011 (3) TMI 1091 - CESTAT, AHEMDABADPenalty under Section 11AC - Manufacture of electrical transformers - The scrutiny of the job work challans issued by the appellant revealed that the appellant cleared copper scrap, generated during the course of manufacture in their factory, without payment of duty to their job worker for further processing - Held that:- The issue is squarely covered by the precedent decisions of the Tribunal in the case of Shakti Wire Products Vs. CCE Mumbai [2009 (3) TMI 181 - CESTAT, MUMBAI] and Jain Metal Components Pvt. Ltd. Vs. CCE Jaipur [2005 (2) TMI 426 - CESTAT, NEW DELHI ] wherein appellant was engaged in the manufacture of excisable goods such as copper flats, rods, wires and strips. In the process of manufacture remnants of copper generated were sent by them to their job workers for conversion into copper bar. In that case also Revenue entertained a view that scrap is finished goods and hence it could not be sent to a job worker & Tribunal took the view that remnants emerging is a necessary consequence of manufacturing activity and waste and scrap generated during the process of manufacture was being recycled and reconverted. Merely because the waste and scrap has been made dutiable, it cannot be said that such a scrap cannot be sent to the job worker. The Tribunal relied upon the decision of the Five Member Bench of the Tribunal in the case of Wyeth Laboratories Ltd. Vs. CCE Bombay [2000 (7) TMI 109 - CEGAT, NEW DELHI].
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