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2018 (8) TMI 351 - AT - Central ExciseCENVAT Credit (entitlement to principal manufacturer) - Job-work - non-receipt of inputs by principal-manufacturer - denial on the ground that the inputs in question were not physically received by the principal manufacturer i.e. DSM Sinochem Pharmaceuticals India Pvt Ltd - Held that:- Although the job workers have issued the invoices with regard to the inputs in question which have been used by the job workers for processing the job worked goods and received thereof by the principal manufacturer. The said challan has not been disputed that the same is fake - after examining the said document, although there may be a procedural lapse on the part of the principal manufacturer, but it cannot be denied the inputs in question were not used in process of job worked goods by the job workers. In these circumstances, whatever inputs used in manufacturing of final product is entitled Cenvat credit to the principal manufacturer. The adjudicating authority has fell in error by holding that the job workers are clearing finished goods to the principal manufacturer, in fact as per the Annexure-I and the challan, the job workers are clearing the job work goods namely 6-APA Crude and the principal manufacturer is clearing the said goods in Refined form - Therefore, it is a factual error on the part of the adjudicating authority holding that the job workers are clearing finished goods to the principal manufacturer. The principal manufacturer is entitled to avail the Cenvat credit on the inputs in question and no penalty is imposable on the appellants - appeal allowed - decided in favor of appellant.
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