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2016 (1) TMI 100 - CESTAT MUMBAI

2016 (1) TMI 100 - CESTAT MUMBAI - TMI - Cenvat Credit - Job Work - Scrap was returned - Denial of refund claim of duty - duty paid of the scrap at job-worker's premises - Held that:- Ruling relied upon by the learned AR is not applicable as the said ruling relates to the period prior to March, 2000. Accordingly, following the ruling of the Hon'ble Bombay High Court in the case of Rocket Engineering (2006 (6) TMI 66 - HIGH COURT BOMBAY) and also in view of the provisions of Rule 4(5)(a) of the C .....

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it account. - Decided in favour of assessee. - Appeal No. E/1091/10 - Dated:- 31-8-2015 - Anil Choudhary, Member (J) For the Appellant : Shri S Chandrasekhar, Dy Manager For the Respondent : Shri Sanjay Hasija, Supdt (AR) ORDER Per Anil Choudhary The appellant, M/s Mahindra & Mahindra Ltd. is in appeal against Order-in-Appeal No. VSK/21/MV/2010 dated 18.2.2010 passed by the Commissioner of Central Excise (Appeals), Mumbai -I by which the refund claim of duty paid of the scrap at job-worker&# .....

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ng that no such duty was payable on the scrap generated at the job-worker's premises, the appellant filed refund claim for ₹ 5,03,878/- on the ground that they have wrongly debited the duty towards payment for the duty on scrap generated at job-worker's premises. It was contended that there was no provisions for duty liability on the appellant under the Cenvat Credit Rules, 2004 to pay duty on the scrap generated at the job-worker's end as the same was not brought back by the a .....

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by the manufacture or provider of output service taking the CENVAT Credit that the goods are received back in the factory within 180 days of their being sent to a job worker. During the period of dispute, under this provisions, the onus of payment of duty on the final products have been imparted upon the manufacturer. The word uses as 'final products' includes scrap also. It is further held that the appellant has not submitted any documentary evidence to prove that the said duty later pa .....

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in the provisions of law. Prior to Cenvat Credit Rules, 2004, under the Central Excise Rules, 1944, Rule 57F(5)(i) provided "the waste, if any, arising in the course of any operation mentioned in sub-rule (4) shall be returned to the factory of the manufacturer of final products." He further points out that this provision is no longer there in the Cenvat Credit Rules, 2004 whereas under Rule 4(5)(a), there is no provision for reversing credit and/or paying duty on the scrap generated a .....

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ay High Court in the case of Rocket Engineering Corporation Ltd. - 2006 (76) RLT 8 (Bom), held that demand for payment of duty on scrap cannot be sustained on the principal manufacturer, on the scrap generated at the job-worker's premises, from castings sent by the principal manufacturer for processing and received back. It was also held that in the facts and circumstances, the question of unjust enrichment does not arise. 3.2 The Hon'ble Bombay High Court in the case of Rocket Engineeri .....

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