Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2019 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (8) TMI 1169 - AT - Central ExciseCENVAT Credit - Job-Work - furnace oil is used in the manufacture of final product on job work basis - denial of credit on the ground that since the job work goods is exempted from payment of duty, credit in respect of furnace oil is not admissible - liability to pay 10% of the value of the goods - N/N. 214/86-CE dated 25.03.1986 - HELD THAT:- The credit is allowed in respect of inputs used in the manufacture of goods under N/N. 214/86-CE despite the fact that job worker is not supposed to pay the duty when the goods are manufactured under N/N. 214/86-CE. This is for the reason that goods manufactured under N/N. 214/86-CE is not otherwise exempted as the notification contained a condition that the job work goods subsequently shall be used in the further manufacture by the principal and the same would be cleared on payment of duty. Therefore, N/N. 214/86 has practically not given any exemption to any goods. There is no doubt that in case the goods manufactured under job work under N/N. 214/86-CE, credit cannot be denied on the ground that goods manufactured under N/N. 214/86-CE is exempted. Appeal allowed - decided in favor of appellant.
|