TMI Blog2016 (12) TMI 30X X X X Extracts X X X X X X X X Extracts X X X X ..... ication and length. The generation of such specified intermediate products will result in certain end cuttings and also certain process loss. This much cannot be disputed. It is also not disputed that there will be certain conversion loss as no process can be undertaken on 100 % conversion basis. If the resultant product has to meet the standard specification of the principal manufacturer, off-cuts and the copper scrap, which is not useable for the intended purpose or further use by the principal manufacturer, are retained by the job workers and have been put to profitable use in further manufacture of various other items. These manufactured items have been cleared on payment of proper central excise duty at the job worker's end. This has a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... HEL procured raw materials viz. copper rods and bare wires and availed credit of excise duty on such raw materials. These were supplied to various job workers under the cover of central excise challan for conversion into intermediate products such as bare copper conductors, Mica taped conductors in term of Rule 3 (1) of Cenvat Credit Rules, 2001 read with Notification No.214/86-CE dated 25.3.1986. 2. The issue involved in the present appeals is that BHEL have not received back the inputs supplied to job workers fully. It is the case of the department that certain quantity of inputs viz. continuous cast copper rods, on which cenvat credit has been availed by BHEL supplied to the job workers, (M/S BCPL Conductors, second appellant) has not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... neither the goods were examined technically before arriving at the conclusion that these are inputs themselves. 4. Ld. AR reiterated the findings in the impugned order. He submitted that in terms of Cenvat Credit Rules, the inputs are to be used for the intended purpose. In the present case, the credit availed for copper rods sent to the job worker were not received back in full. The credit on copper rods retained by the job worker cannot be allowed at the principal manufacturer's end. 5. We have heard both the sides and perused the appeal records. 6. The admitted facts of the case are that the BHEL are sending CC copper rods to the job worker for further manufacture of mica taped and bare copper conductors. We find that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the Id. Counsel for the appellant to explain the process of emergence of off-cuts and scrap during the manufacturing process at the job worker's end. We find that there is no violation of provisions of Rule 4 (5)(a) of Cenvat Credit Rules, 2004 read with provisions of Notification No.214/96-CE. It is also apparent that the resultant off-cuts and scrap cannot be considered as inputs as such at the job worker's end. We find no evidence to that effect in the proceedings before the lower authority. Calculation for quantification of cenvat credit to be reversed by the principal manufacturer has been worked out on some percentage basis with no cross examination of manufacturing process at the job worker's end and the emergence of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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