Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2017 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (7) TMI 479 - AT - Central ExciseCENVAT credit - inputs - short received inputs from job-worker - denial of credit on the ground that certain inputs were rejected/ spoiled by the job worker and certain inputs were not received back by the appellant from the job worker - Whether the cenvat credit of ₹ 6,00,613/- can be denied to the appellant on account of inputs rejected/spoiled at the end of job worker premises which have been received by the appellant? - Held that: - as per Rule 4(3) of the CCR, 2004 if any inputs were used in manufacturing of final product is entitled to take cenvat credit. Admittedly, the inputs later on found rejects/spoiled were sent for manufacturing to the job worker and used in manufacturing process, therefore, as per cenvat credit Rules, 2004, the appellant is entitled to avail cenvat credit - credit allowed. Whether Cenvat credit of ₹ 67,16,069/- can be denied to the appellant inputs short received short on account waste/scrap generated at the end of job workers? - Held that: - scrap generated at the end of the job worker is not manufactured for final product, therefore, the Rules 4(6) of the CCR, 2004 are not applicable to the facts of the case - said issue is covered by the circular B-4/7/2000-TRU dated 03.04.2000 and various decisions namely in the case of Mahindra Hinoday Industries Ltd. [2015 (1) TMI 26 - CESTAT MUMBAI], where it was held that the appellant is entitled for Cenvat credit on inputs which contained in waste and scrap generated at the end of job worker - the waste and scrap generated at the end of the job worker, who had cleared the said waste and scrap on payment of duty. The appellant cannot be denied cenvat credit, therefore, we hold that the cenvat credit on ₹ 67,16,069/- cannot be denied to the appellant. Appeal allowed - decided in favor of appellant.
|