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2020 (2) TMI 753 - AT - Central ExciseCENVAT Credit - receipt of inputs from other units - job-worker or not - Rule 4(5)(a) of the Cenvat Credit Rules, 2004 - allegation that the Unit No.I and Unit No.II being under the same management, Unit No.I cannot be treated as a job-worker of Unit No.II - HELD THAT:- The appellant company had received certain inputs from their Unit No.II for further processing and after the inputs were processed, the same were removed from Unit No.I to Unit No.II. The movement of inputs of the processed goods were carried out under Annexure-II Challans by following the procedure laid down under Rule 4(5)(a) of the Cenvat Credit Rules, 2002 - Undisputedly, the excise duty involved on the finished goods viz. transmission towers etc. had been discharged at their Unit No.II at the time of its clearance from the said unit to their respective customers. The judgement of the Hon’ble Supreme Court in the case of COMMISSIONER OF CENTRAL EXCISE, JAIPUR VERSUS JK. UDAIPUR UDYOG LTD. [2004 (9) TMI 101 - SUPREME COURT] relied upon by the adjudicating authority is not relevant, inasmuch as the Hon’ble Apex Court in the said case was confronted with the issue whether explosives used in mines at a distance away from the factory was to be considered as inputs. Penalty imposed on the Managing Director is also set aside - Appeal allowed - decided in favor of appellant.
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