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2013 (9) TMI 344 - AT - Central ExciseCENVAT credit - SSI Exemption - Value Based Exemption under Notification no. 8/2003 - Revenue was of the view that in terms of Rule 11(2) of CENVAT Credit Rules, 2004, a manufacturer who opted for exemption based on value or quantity, the balance of CENVAT credit account would lapse and shall not be allowed to utilize for payment of duty on any excisable goods and he would not be entitled to avail the CENVAT credit under Rule 3 or Rule 11 of CENVAT Credit Rules, 2004 - Whether a job worker entitled to take credit of duty in respect of duty paid inputs used by him in manufacture of goods on job work basis or not - Held that:- Availment of CENVAT Credit of duties paid on such inputs in question was absolutely in order, and in accordance with the Scheme of CENVAT Credit Rules - The appellant was entitled to avail CENVAT Credit. Following STERLITE INDUSTRIES (I) LTD. Versus COMMISSIONER OF CENTRAL EXCISE, PUNE [2004 (12) TMI 108 - CESTAT, MUMBAI] - The Scheme of Rule 57C of the erstwhile Central Excise Rules had been similar to the Scheme of Rule 6 of CENVAT Credit Rules now in operation - Under Rule 57F of the erstwhile Rules, removal of duty paid inputs to a job worker for carrying out further operations and processes was permissible and the same scheme of allowing a job worker to produce or process goods using the inputs sent by the principal manufacturer was contained in the CENVAT Credit rules also - The appellants had received duty paid inputs directly and the same had been used in relation to manufacture of the goods on job work basis, but the inputs being duty paid inputs and the same having been received by the appellant directly and having been used in relation to manufacture of goods on job work basis, Rule 6(1) of the CENVAT Rules was not attracted - Since the appellant succeeded on merit, the question of imposition of penalty does not arise – Decided in favour of Assessee.
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