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2015 (10) TMI 38 - AT - Central ExciseDenial of CENVAT Credit - metal scrap cleared to job worker without payment of duty - Department was of the view that the metal scrap (steel scrap and brass scrap) is not in the nature of semi-finished/semi-processed goods and as such, cannot be cleared without payment of duty under Rule 4(5)(a) to job workers for conversion into ingots - Held that:- even if, the scrap had been cleared on payment of duty, the job workers would have been taken its Cenvat credit and thereafter, would have cleared ingots on payment of duty by utilizing the Cenvat credit and the respondent would have taken the Cenvat credit of the duty paid by the job workers and as such, this would be a revenue neutral situation. In view of the above circumstances, this is not a case which calls for imposition of penalty on the Director and Authorised Signatory under Rule 26 of the Central Excise Rules, which is attracted only when a person is concerned in transporting, removing, depositing, keeping, concealing, selling or purchasing, or in any other manner dealing with any excisable goods which he knew or had reason to believe are liable for confiscation and this is not a case where the above elements are present. Therefore, even on merits, penalty on the respondent under Rule 26 of the Central Excise Rules, 1944 is not called for. - Decided in favour of assessee
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