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TMI Blog2017 (6) TMI 424X X X X Extracts X X X X X X X X Extracts X X X X ..... or conversion of the same into Copper Cathode and Continuous Copper Rod. They cleared the above mentioned final product from the job worker's premises itself after payment of duty but the duty for the above said goods is discharged at Tuticorin. They obtained permission from the Commissioner of Central Excise for transfer of the anode to the job worker unit at Silvasa. As per the directions, the appellant had executed necessary bond and furnished bank guarantee. In the permission letter, the Commissioner of Central Excise had stated a condition that the appellant is liable to pay duty on any loss during transitor in the process of manufacturing by the job worker. There occurred process loss at the job worker unit and the department was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Appeals) and adjudicating authority as stated above has been accepted by the department and no further appeal has been filed by the department. 6. On the submissions made by both sides, we find that the issue whether appellant is liable to pay duty on the burning loss occurred in the job worker unit has been well settled in favour of the assessee in their own case. It is also to be mentioned that the burning loss is only 0.0135%. In Order-in-Original No.10/2009 dt. 30.07.2009 for the period July 2007 to September 2007, the adjudicating authority has observed that Section 3 of the Central Excise Act, 1944 stipulates that duty is to be levied on the goods manufactured and that there is no provision for charging duty on invisible losses. Aga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itable due to theft etc. and not invisible process loss. Hence the demand on the process loss under section 11A of Central Excise Act, 1944 envisaged in the show cause notice is not correct and also not legally sustainable. Accordingly, the demand of interest under section 11AB of Central Excise Act, 1944 is also not maintainable. I am also not inclined to impose penalty under Rule 25 of Central Excise Rules, 2002 as there is no contravention of provisions of Central excise Rules, 2002. However, in order to monitor and verify the process loss M/s.SIL, Tuticorin, are directed to submit a monthly statement of invisible loss as a percentage of quantity and value to the Assistant Commissioner of Central Excise, Tuticorin within 15th of the succ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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