New User   Login      
Tax Management India .com TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

2015 (5) TMI 132 - CESTAT NEW DELHI

2015 (5) TMI 132 - CESTAT NEW DELHI - TMI - Demand of duty - Duty on scrap generated at job worker's end - whether appellant being principle manufacturer is liable to pay duty on waste and scrap generated at job workers end where job charges forms the part of value of waste and scrap or not - Held that:- Tribunal in the case of Fag Engineers India Ltd. (2011 (1) TMI 95 - CESTAT, AHMEDABAD) wherein this Tribunal has held that duty is being demanded by treating them as a manufacturer of waste .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

R ORDER Per: Ashok Jindal: The appellant is in appeal against the impugned order. 2. The facts of the case are that appellant is manufacturer of IC engine Petrol, IC Engine Diesel, Transmissions and their parts. During the course of manufacture of final product they sent certain processed goods to the job workers for further processing. During the course of processing of job workers certain scrap was generated. The Appellant is receiving processed goods from the job workers but not receiving any .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

p generated and sold by the job worker cannot be raised against the principle manufacturer. At the most principle manufacturer may be asked to reverse the Cenvat Credit attributable to the input used in generation of waste and scrap. But in this case department has not asked the appellant to reverse the Cenvat Credit on inputs used in generation of waste and scrap. Therefore, impugned order is to be set aside. 4. On the other hand Ld. AR submits that as per the agreements between the parties the .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

Tribunal has held that duty is being demanded by treating them as a manufacturer of waste and scrap which is factually incorrect. In fact, manufacturer of waste and scrap is the job worker. Therefore, duty cannot be demanded from the principle manufacturer. The same view was taken by this Tribunal in the case of Mahindra Hinoday Industries Ltd. Vs. C.C.E. Pune-I-2013 (292) ELT 456 (Tri-Mum) wherein this Tribunal has held in para 7 as under: 7. A reading of the rule clearly indicates that the As .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

tral Excise Rules, 2002 and the liability to pay duty is on the person who produces or manufactures any excisable goods in terms of Rule 4 of the said rules and duty liability has to be discharged in the manner provided for in Rule 8 of the said rules. The liability to pay excise duty and the manner of payment of duty are governed by Rules 4 and 8 of the Central Excise Rules. They are not, in any way, altered or changed by the Cenvat Credit Rules, 2004 which deals with allowing of Cenvat credit. .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version