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2012 (1) TMI 106 - CESTAT BANGALOREDuty demand - Recovery of the credit in under Rule 14 of the CENVAT Credit Rules, 2004 read with the proviso to Section 11A(1) of the Central Excise Act - Bar of limitation - Held that:- Rule 3(5) provides that inputs or capital goods, on which CENVAT credit has been taken, can be removed as such from the factory of the manufacturer of the final products on payment of an amount equal to the credit availed thereon. Such removal is required to be made under an invoice referred to in Rule 9 of the Central Excise Rules, 2002. If these provisions are carefully perused, it would become clear that the removal of goods envisaged is a removal for good just like the removal of an excisable final product. A case of removal of input or capital goods to a job worker for further processing, testing, repair, re-conditioning or any other purpose is governed by Rule 4(5)(a) of the CENVAT Credit Rules, 2004. If the job-worked goods are not received back in the factory of the manufacturer of final product within such period, the manufacturer of final product shall pay an amount equivalent to the CENVAT credit attributable to the input or capital goods, by debiting the amount in the CENVAT account or otherwise. Rule 4(5)(a) allows CENVAT credit on the input to be taken by the manufacturer of final product before removal of the input to the job worker. It was this right which was exercised by the present appellant and the same is not assailable - manufacturer of final product is entitled not only to avail credit on the input supplied to their job worker but also to take credit of the duty paid on the intermediate product by the job worker - Following decision of VENLON POLYESTER FILM LTD. Versus COMMR. OF C. EX., BANGALORE-III [2007 (9) TMI 354 - HIGH COURT OF KARNATAKA] - Decided in favour of assessee.
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