TMI Blog2016 (12) TMI 984X X X X Extracts X X X X X X X X Extracts X X X X ..... d 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 - In such situation, we find that there is no justification for reversal of any credit availed on inputs by BHEL. There is no allegation of diversion of inputs or unaccounted clearance of the same either at the BHEL side or at the end of the job work- manufacturer - 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. - no merit in the impugned order and the same is set aside - appeal allowed - decided in favor of assessee. - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t Rules, 2004. The cenvat credit of such non-returned inputs is sought to be recovered. Proceedings initiated against the appellant resulted in the impugned order confirming a demand of cenvat credit amounting to ₹ 1,05,31,710/- for the period 1.4.2003 to 15.02.2008. Penalty of equivalent amount was also imposed along with penalty of ₹ 5 lakhs on BCPL. The copper rods seized in the premises of the job worker was also ordered to be confiscated with option to redeem the same on payment of fine. 3. Ld. Counsel for the appellant submitted that as per Standard Rate Contract with various job worker, the waste and scrap including off-cuts generated during the course of job work are to be retained by the job worker to be cleared by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were not returned from the job worker and accounted for. We find that BHEL have categorically asserted that there will certainly be a process loss and also emergence of scrap in the form of off-cuts and other pieces. BHEL requires the product with a particular specification 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 us ..... X X X X Extracts X X X X X X X X Extracts X X X X
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