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2012 (10) TMI 37 - CESTAT, NEW DELHIDemand of duty and penalty - assessee get raw material under job-work challan from other Central Excise Assessee manufacture finished products and clear the goods under exemption Notification 214/86-C.E. – alleged that Respondent had an agreement with suppliers of raw material to give back finished goods with weight equal to 90% of the weight of raw material supplied. The 10% is taken as burning loss or process loss – Held that:- Inputs used by the job-worker is identical to the goods supplied by the Principal manufacturer. But that fact cannot bring in any additional levy - This is only for the purpose of meeting his contractual obligation of restricting burning loss to 90%. Further the goods cleared by the Respondent is accounted by the recipient of the material as required under Central Excise Rules - demand on account of Component B is not maintainable - intention to evade payment of duty has not been clearly broughtout in the order-in-original - it was a bona fide mistake and there is no case to increase the penalty - Appeal filed by Revenue rejected.
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