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2012 (12) TMI 883 - AT - Central ExciseDuty exemption under notification no.214/86-CE denied- Cenvat credit in relation to manufacture of polyester chips on job work basis - Held that:- Duty exemption under notification no.214/86-CE to the job worker is available on the undertaking given by the principal manufacturer that he will discharge the duty liability on the final product cleared from his factory. Tribunal in the case of Sterlite Industries (I) Ltd. (2004 (12) TMI 108 - CESTAT, MUMBAI) and the Apex Court in the case of M/s. Escorts Ltd. (2004 (8) TMI 106 - SUPREME COURT OF INDIA) have held that if any manufacturer of certain goods on job work basis, uses his own inputs, the job worker would be entitled to cenvat credit in respect of these inputs and he would not be liable to reverse the same even though the goods have been cleared to the principal manufacturer without payment of duty under notification no.214/86-CE. The ratio of these judgements is squarely applicable to the facts of this case and the appellant appear to be eligible for cenvat credit of the service tax paid on the input service availed in or in relation to the manufacture of the polyester chips on job work basis, which had been cleared to the principal manufacturer without payment of duty under notification no.214/86-CE, hence the requirement of pre-deposit of cenvat credit demand, interest and penalty is waived - Stay allowed.
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