TMI Blog2005 (6) TMI 184X X X X Extracts X X X X X X X X Extracts X X X X ..... old in the market. The similar issue is answered in the case of M/s. International Tobacco Co. Ltd. v. CCE,[ 2003 (10) TMI 171 - CESTAT, NEW DELHI] . It is observed that no process of manufacturing taking place in respect of waste and scrap generated during the course of manufacture of cigarettes. Moreover, provision for dutiability of waste and scrap existed only in the erstwhile Central Excise Rules, 1944 (Rule 57F) and no such provision is there in the Cenvat Credit Rules, 2001. Duty is not leviable u/s 3 of the Central Excise Act, 1944. As the issue involved in this case is well-settled in the aforesaid case, these appeals are also disposed off on similar terms. - HON'BLE S.S. SEKHON (T) AND T. ANJANEYULU (J), MEMBERS For the Appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al, which is not collectable and hence cannot be sold in the market. 5. The appellants are always clearing the recoverable scrap generated in their factory on payment of appropriate Central Excise duty. Whereas the recoverable scrap generated at the job workers' premises is retained by the job workers and is sold by the job workers in the market. 6. During the period 1998-99 to 2000-01, the total irrecoverable scrap generated at the appellants' factory as well as at their job workers' end is 45,285 kgs. Whereas during the period 2001-02 to 2002-03, the total scrap generated at the appellants' job workers' end and not returned to them is 1,70,394 kgs. 7. Show Cause-cum-Demand Notice dated 25-3-2003 was issued to them to s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s appeal. 11. The appellants contend that the Commissioner (Appeals) failed to appreciate the vital fact that nowhere in Rule 57AC(5)(a)/Rule 4(5)(a) of the Cenvat Credit Rules, there is any provision made to compel the principal manufacturer to bring back the scrap generated at the job workers' end or to pay the Central Excise duty on the said scrap. 12. The Central Excise duty cannot be demanded from the appellants since the job worker is the manufacturer of the said scrap, which is retained by him and sold in the market. 13. The similar issue is answered in the case of M/s. International Tobacco Co. Ltd. v. CCE, Ghaziabad [2004 (165) E.L.T. 314 (Tri.-Del.)]. It is observed that no process of manufacturing taking place in respect of w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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