CENVAT credit in respect of inputs, capital goods and input services. The raw material namely alloy steel and semi-finished components are removed to job worker for job work like machining, grinding, etc. The wastes generated in the job work premises are not received back at the Appellant's premises and Appellant is not discharging the duty on the waste and scrap generated at the job workers’ premises. Alleging nonpayment of the excise duty on the scrap generated or cleared from the job work premises, proceedings were initiated and show cause notice was issued. Different show cause notices were issued for the period from January 2006 to November 2016. During the relevant period, M/s. Vishranti Engineering, Bangalore were also merged with the Appellant and considering the pendency of the show cause notices pending against them, it was also taken up for hearing along with the present show cause notice. The Adjudication Authority held that appellant had contravened the provisions of Section 4 of the Central Excise Act, 1944 and Rules 4, 5, 6,8,12 and 16A and 16B of the Central Excise Rules, 2002 and Rule 4 of the Cenvat Credit Rules, 2004 in as much as they have manufactured and cleared alloy steel scrap falling under Central Excise Tariff Heading (CETH) 72041000, without accounting the same in their records, without payment of appropriate Central excise duty, without filing ER-1 returns for the quantity of scrap generated and cleared and without following the provisions of the Cenvat Credit Rules, 2004 and the Central Excise Rules. 2002. Under the provisions of Rule 16A to 16C of the Central Excise Rules, 2002 read with Rule 4 of the Cenvat Credit Rules, 2004 the liability to pay duty on the finished products, intermediate products and scrap arising therefrom is on the person availing the Cenvat Credit and, therefore, no differentiation can be made between the scrap generated at Attibele Plant and at the job workers' end during the course of processing of material sent by the appellant. Accordingly, duty amount of Rs. 1,22,74,812/- was confirmed with interest on the scrap generated at job workers' premises. Penalty was also imposed under Rule 25 and/or Rule 27 of the Central Excise Rules, 2002.
