2023 (3) TMI 434 - AT - Central Excise

SSI Exemption - job worker - removal of the scrap to the job worker was done as per Rule 4 (5) (a) of Cenvat Credit Rules, 2002 - Department was of the view that the appellant ought to have paid duty on scrap while removing them to the job worker - recovery of Central Excise duty on scrap removed to job worker for the period from September 2008 to February 2010 - whether the appellant is liable to pay duty on the scrap that has been sent to the job workers for manufacture of intermediate products such as angles and channels.

HELD THAT:- It is not disputed that removal of the scrap to the job worker was done as per Rule 4 (5) (a) of Cenvat Credit Rules, 2002. So also, it is not disputed that the job worker cleared intermediate goods in the nature of angles and channels to the appellant by paying duty and raising invoices.

The show cause notice dated 14.06.2012 is issued invoking the extended period. It is not disputed that the appellant has accounted the removal of scrap to the job worker as well as the clearance of the intermediate goods (angles and channels) by payment of duty. The Department has vaguely alleged that the appellant has suppressed facts with intention to evade payment of duty. There is no evidence to show that the appellant has done any positive act to deliberately suppress the facts so as to evade payment of duty. The appellant therefore succeeds on the ground of limitation also.

Appeal allowed.