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2013 (11) TMI 1215 - AT - Central ExciseRemoval of goods from the premises of Job worker - Liability to pay duty as per Rule 4(5)(a) of Cenvat credit Rules, 2004 on Waste and scrap brought back and cleared - Condition of return of waste and scrap – Held that:- Following Mahindra Hinoday Industries Ltd. Vs. CCE Pune-I [2011 (9) TMI 139 - CESTAT, MUMBAI] - 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. The loss on account of waste and scrap is only 2% which has not been argued to be unreasonable by the Revenue - There is also no binding clause in Rule 4(5)(a) of CENVAT Credit Rules, 2004 that any loss of inputs by generation of waste and scrap has to be compensated by reversing equivalent credit taken on the virgin metal - demand if any on waste and scrap has to be raised against the manufacturer job worker and not upon the raw material supplier – Decided in favour of Assessee.
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