2010 (12) TMI 511 - AT - Central Excise

Demand and penalty - Cenvat credit on inputs - job worker - Since the assessees took credit only of duty paid first by them on the plastic components and then of the duty paid by the job worker on the painted inputs - The job worker had an option either to pay duty or clear the processed inputs without payment of duty under a challan in terms of Notification No. 214/86 - This is not a case where any double benefit has accrued to the assessees for the reason that they had taken credit only of duty paid on inputs and of duty paid on processed goods - Decided in favour of assessee.

Summary

The appellants availed credit on inputs and cleared them to job worker for painting. Job worker returned inputs after painting, and appellants took credit on both inputs and processed inputs. Department objected, but Tribunal ruled in favor of the appellants as they only took credit for duty paid once on each. Impugned order was set aside, and appeal was allowed.