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2011 (8) TMI 621 - HC - Central ExciseAssessee manufacturer of Telephone and Modular Terminal Rosset (MTR) which are connectors and help in operation of MTR - Telephone manufactured by themselves and MTR from SSI - Appellant transfers raw material to SSI which are used in manufacture of MTR under job work challan 57F(4)- SSI cleared good without duty as credit on input goods availed by appellant and similarly liability to pay duty - Assessee failed to discharge duty - After two years credit was reversed and assessee denied interest liability on the ground that he was not liable to duty of excise - Held That:- Tribunal rightly held that the MTRs do not constitute an integral part of the telephone, but are accessories on which duty is payable on clearance made by the appellant. Since appellant has availed duty credit on the inputs purchased and transferred to job workers for manufacture, appellant has to necessarily pay duty on the MTRs sold and adjust duty credit availed on the components by following Rule 57A extracted above.Appeal challenging the demand of duty is dismissed.
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