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2011 (7) TMI 546 - AT - Central ExciseDutiability of Waste and scrap - Manufacturer of Electric accumulators(automobile batteries) - respondents were receiving rejected batteries from their customers under the warranty claim & the same were being sent to their smelter job worker for separation of plastic container and lead materials and refining of lead contents contained in the said batteries under the cover of job work challans - SCN issued proposing confirmation of demand of duty leviable in respect of plastic containers and lead scrap generated in the job worker s factory and not returned by them to the respondent - Held that:- Cenvat Credit Rules are silent on disposal of waste & scrap - Following the decision of International Tobacco Company Ltd.[2003 (10) TMI 171 - CESTAT, NEW DELHI] since job worker is the manufacturer of such scrap, the demand & penalty on the appellants on this score cannot be sustained - Decided in favour of assessee. Duty confirmation on the lead scrap sent to the job worker for conversion into lead ingots - The appellate authority has relied upon the case of Wyeth Laboratories Ltd. Vs. CCE [2000 (7) TMI 109 - CEGAT, NEW DELHI] wherein it was held that the scrap generated in the manufacturer s factory can be sent to the job worker for carrying out the processes in terms of the Erstwhile Provisions of Rule 57F (4) - Decided in favour of assessee.
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