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2014 (3) TMI 203 - AT - Central ExciseCenvat Credit - Job Work under Rule 4(5)(a) of Cenvat Credit Rules, 2004 - Job worker paid the duty - Appellant took the Cenvat Credit of the duty paid by the job workers. The Department was of the view that by this modus operendi, the Appellant availed Cenvat Credit in respect of the same inputs twice - first at the time of receiving the inputs in their factory before sending the same to job workers and thereafter second time at the time of receiving intermediate products from the job workers on which the job workers had paid duty on the value which included the value of the free supply inputs. Held that:- Logically, the ground on which the Cenvat Credit is sought to be denied is totally incorrect. There is no condition in Rule 4(5)(a) of the Cenvat Credit Rules, 2004 that job worker should necessarily avail of full duty Exemption under Notification No.214/86-CE. This exemption being a conditional exemption, is not required to be compulsorily availed by job-workers. When the inputs, in question, have suffered twice, first in the hand of input manufacturers from whom the Appellant had procured the inputs and second time in the hand of job workers who at the time of clearance of intermediate products made out of the inputs paid duty on value which included the cost of the inputs, the credit of the duty paid on the intermediate product cannot be denied when such intermediate were made out of those inputs, even if the Appellant had earlier taken the Cenvat Credit in respect of inputs while receiving the same. The intermediate products made out of inputs are different from inputs and just because the Appellant have availed Cenvat Credit in respect of the inputs, the Cenvat Credit of duty, if any paid on the intermediate products by the job-workers, cannot be denied to the principal manufactures. - Decided in favor of assessee.
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