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2006 (9) TMI 337 - AT - Central ExciseCenvat/Modvat - Orders on denial of credit demands - interest and penalty - Manufacturing Factory - benefit of Exemption Notification No. 214/86 - whether a Unit if they do not have any machinery in their premises can be a factory under the Central Excise Law - HELD THAT:- We find nothing amiss in the appellant having form out their entire production on job work to various job worker/manufacturers under the provisions of Notification 214/86-C.E. since no charge on violation of the procedures prescribed under this Notification have been brought out or shown to us, we would consider that the input credit which was availed by these appellants and thereafter their having obtained goods manufactured exclusively and completely on job work outside the premises, they could use such credit to discharge the duty liabilities under the provisions of notification from such credit accounts as well as from their personal ledger account which in the applicants admitted position that they have. In view that we are taking as long as the job working is allowed, we cannot insist on a manufacturing factory will be having any machine or machinery in their premises to be a sine qua non to call for registration under the law or a liability to credit or discharge of duty from such credit. We therefore find no reason to impose and call for any penalty in this case. The orders on denial of credit demands, interest and penalty as arrived at cannot be sustained and the impugned order set aside and this appeal allowed.
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