ORDER
S.S. Sekhon, Member (T)
1. Appellants are job workers. They receive paper covered stripes from suppliers after following the provisions of Notification No. 214/86 and Rule 57F(3) procedures. The job work is returned to the supplier. Waste generated during the process of job working, along with waste generated during the course of the appellants own production is being cleared on payment of duty under concessional rate of SSI under Notification No. 1/93. Demands were issued on full quantity of waste/scraps of copper cleared during the period June, 96 to July, 96 denying them the benefit of SSI rate of duty, duty demands were made and confirmed.
2. After hearing both sides and considering the issue it is found –
(a) Waste and scrap of copper generated during the manufacture of appellants own goods has to be cleared at concessional rate under the provisions of Notification 1/93.
(b) Waste and Scraps generated out of modvat inputs received under Notification No. 214/86 and Rule 57F(3) are not goods of the job worker and duty demands on such waste/scrap inputs have to be directed and made on the supplier of the inputs and not the job worker. Duty on such scrap/waste will have to be discharged by and at rates applicable to the supplier of the Modvat inputs. Demands on the job worker are misdirected.
(c) Duty demand made in this case on entire quantity cannot be upheld. 3. Consequently, the order is set aside and appeal allowed.