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2015 (10) TMI 2276 - AT - Central ExciseCENVAT Credit - Whether the credit availed on H.R.Sheets of thickness less than 4 mm is admissible or not - Held that:- when the duty on HR sheets is not paid on the basis of thickness but on the basis of weight, the use of HR sheets of less than 4 mm thickness has no bearing on availing the credit. Revenue does not raise any discrepancy with regard to the weight of input used and weight of final product manufactured. Again, Revenue does not have any case that the HR sheets of less than 4 mm thickness procured by the appellant was diverted in any manner. The department has come to a conclusion without any basis that HR sheets of less than 4 mm thickness is not used by the appellant in manufacture of final products. It is immaterial whether the final product could be manufactured without actually using a particular input or not. What is actually material is whether the assessee has used the inputs in or in relation to manufacture of final products. I find that the assessee has been able to establish that they have used HR sheets less than 4 mm in the manufacture of final products by way of statement given by the managing director of the appellant and certificate issued by the chartered engineer. In view thereof, I hold that denial of credit on HR sheets less than 4 mm thickness is unjustified. Whether the appellant is liable to pay duty on scrap generated at the job workers end. - Held that:- when the waste and scrap is generated at the job workers premises and inputs are supplied by the appellants then the duty liability is not to be fastened on the principal manufacturer. Similar view has been taken in Mukand Ltd. Vs .CCE, Belapur-[2015 (2) TMI 703 - CESTAT MUMBAI]. Following the ratio laid in the above judgements, I am of the view that the appellant is not liable to pay duty towards waste and scrap generated at the job worker s premises. - Decided in favour of assessee.
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