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2009 (3) TMI 181 - AT - Central ExciseJob Work under cenvat credit – rule 4(5) – waste and scrap whether entitled to be sent on job work - remnants were sent to job worker for conversion into Copper bar in terms of provision of Rule 4(5)(a) of Cenvat Credit Rules, 2004, under job work challans, and returned. - During the scrutiny of the monthly records, the Range Superintendent pointed out discrepancy that, the scrap being final product is not entitled to be cleared in terms of Rule 4(5)(a) of Cenvat Credit Rules, 2004, and that the same needed to be cleared on payment of duty – held that - there is no question of holding scrap as final product and disallowing the benefit of clearance of scrap for converting into ingots, under Rule 4(5)(a). The demand of duty can only be confirmed, if there is diversion of generated scrap for any other purpose other than reconversion. It is not in dispute that in the present case, the scrap cleared by the appellants under job work challan has been returned in the form of ingots and properly accounted for. – demand set aside.
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