9911796707
TMI Blog2019 (5) TMI 1169X X X X Extracts X X X X X X X X Extracts X X X X ..... eading No. 87089900 of the First Schedule to the Central Excise Tariff Act, 1985. During the disputed period, the appellant was manufacturing and supplying goods to M/s Tata Motors, Pune (principal manufacturer) on job work basis. For undertaking the job work activities, the principal manufacturer had provided steel items free of cost to the appellant and only paid the job charges to the appellant. After completion of the assigned job work, the goods were cleared by the appellant on payment of central excise duty. It was noticed by the department that scrap generated out of free supply raw material was sold by the appellant and the proceeds were retained with them. It was further noticed that the appellant had not included amortized value o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... value. He also submitted that the parts supplied by the appellant were further used by the principal manufacturer in the manufacture of vehicles, which were cleared on payment of duty by them. With regard to demand of duty on removal of scrap items, he submitted that in terms of Rule 4(5)(a) of the Cenvat Credit Rules, 2004, the principal manufacturer was permitted to follow the procedures of sending raw material on job work basis and receipt of the semi-finished job worked goods without payment of duty; thus, under such circumstances, the question of demanding the differential duty would not arise. He has relied upon the decision of this Tribunal in the case of P.R. Rolling Mills Pvt. Ltd. Vs. CCE-2010 (249) ELT 232 (Tri.-Bang.), affirmed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... utory provisions. 5. Heard both sides and perused the records. 6. In the present case, it is an undisputed fact that the steel items received by the appellant from M/s Tata Motors (principal manufacturer) were duty paid; that the appellant had availed Cenvat Credit of the central excise duty paid on such steel items and had passed on the Cenvat benefit to the principal manufacturer and that the goods manufactured on job work basis, out of the steel items supplied were entirely cleared to the principal manufacturer and the receipt particulars were recorded in the Cenvat records. In terms of Rule 4(5)(a) of the Cenvat Credit Rules, 2004, the manufacturer of final product is permitted to take credit on inputs received in its factory and se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng Works (supra) relied upon by the Learned AR for Revenue is not applicable to the facts of the present case inasmuch as the same had not dealt with the implication of Rule 4(5)(a) ibid in context with the job work activities. The Tribunal in the case of P.R. Rolling Mills (supra) has considered the said judgment delivered by the Hon'ble Apex Court and held that value of scrap need not be included as per the procedures set out in the Cenvat statute. The order of the Tribunal in the case of Jemcon Industries (supra) is entirely on different set of facts inasmuch as the job worker was availing SSI exemption by not including the value of free supplied material by the principal supplier and the issue involved therein does not relate to demand ..... X X X X Extracts X X X X X X X X Extracts X X X X
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