Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2014 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (8) TMI 496 - AT - Central ExciseCENVAT Credit on goods procured by the Job worker - allegation that there is no job-working activity undertaken by the vendors as defined under Rule 2(n) of the said Rules - allegation that there is no actual receipt of inputs / goods - Held that:- Once the finished product has correctly discharged the liability there cannot be any leakage of revenue. Cenvat Credit envisages that duty/tax paid on the input/input services will be available for discharge of duty liability on the finished products. It is not in dispute that the inputs were used in the fabrication / assembly of the finished products. Similarly, it is also not in dispute that finished products did emerge at the job-workers' premises. In these circumstances, the conclusion drawn by the adjudicating authority that there is no job work involved in the present case is a contradiction in terms. A job work might amount to "manufacture" or might not amount to "manufacture". In many instances the job work results in production of a new commodity. For example, in the case of textile fabrics, a job-worker undertaking the process of bleaching or dyeing of fabrics, new products namely, dyed/bleached fabrics come into existence. Thus, the activities amount "manufacture". Similarly, in the case of a bus body built on a chassis, the activity amounts to "manufacture". Therefore, it cannot be said that since the activities undertaken result in a new commodity, there is no job-work involved - appellant has made out a strong prima facie case for grant of stay. Accordingly, we grant unconditional waiver from pre-deposit of the dues adjudged against the appellant and stay recovery thereof during the pendency of the appeal - Stay granted.
|