Home Case Index All Cases Central Excise Central Excise + HC Central Excise - 2013 (4) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (4) TMI 277 - HC - Central ExciseCenvat/Modvat Credit of duty paid by the Job worker - Whether the job workers can prefer to pay excise duty in spite of having exemption notification bearing no. 214 of 1986 - Held that:- By relying upon a three-judge-bench decision of the Supreme Court in the case of International Auto Ltd. v. Commissioner of Central Excise, Bihar (2005 (3) TMI 132 - SUPREME COURT OF INDIA), submitted that the questions so raised by the Revenue are fully answered by the Supreme Court in the above decision and the selfsame principle has been followed by the Tribunal. There is no dispute that according to the modvat scheme, it is the modvat of such final product which would have to include the cost of the inputs and in respect of which Modvat credit could be taken at the time of clearance of the final product and thus, in the facts of the present case, the Tribunal rightly rejected the contention of the Revenue that the respondents should have reversed the Cenvat credit taken before sending the goods to the job worker since the job worker had not followed the procedure of job work. No merit in the contention of the revenue that the job workers cannot prefer to pay excise duty in spite of having exemption notification bearing No. 214/86 exempting the job workers from paying duty in view of the mandatory provision of Section 5A(1A) of the Act. - Decided in favor of assessee and against the revenue.
|