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2016 (6) TMI 872 - AT - Central ExciseCenvat Credit - Job Work - assessee sent their grey man-made fabrics to the job worker for processing and return - Revenue took the view that these goods, being in the nature of finished products, cannot be cleared to the job worker under Rule 4(5)(a) read with Rule 12B of Central Excise Rules, 2002 - Held that:- It is not in dispute that the ultimate products which has been cleared by the appellant-assessee are processed fabrics and the appropriate duty has been paid at that stage by them. Keeping this in view, we have no hesitation in categorising the grey fabrics as input/ intermediate products. Rule 4(5)(a) of the Cenvat Credit Rules as also Rule 12B permits such goods to be sent to the job worker for further processing and after processing by the appellant assessee on payment of appropriate duty. Under the circumstances, we find that the view taken by the Commissioner to consider these goods as finished goods is totally erroneous and the demand of duty itself is without the sanction of law. - No demand - Decided against the revenue.
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