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2023 (5) TMI 598 - AT - Central ExciseLevy of Excise duty on process loss - loss arising out of job-work - job worker has returned the equal quantity of the goods for the reason that there is an addition of paper which was used for insulation purpose - HELD THAT:- Even though the job worker has returned the equal quantity of the goods for the reason that there is an addition of paper which was used for insulation purpose. As regard the process loss it is an invisible loss which arises during the course of job work, hence, the same cannot be charged to the duty. The issue is no longer res – integra as per the decision of this Tribunal in the appellants own case VOLTAMP TRANSFORMERS LTD VERSUS C.C.E. & S.T. -VADODARA-II [2021 (11) TMI 597 - CESTAT AHMEDABAD] where it was held that issue decided in the case of M/S VOLTAMP TRANSFORMER LTD. VERSUS CCE VADODARA [2013 (11) TMI 1215 - CESTAT AHMEDABAD] where it was held that 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. The impugned order is not sustainable - Appeal allowed.
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