Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2022 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (3) TMI 502 - AT - Central ExciseCENVAT Credit - inputs were sent to job worker under Rule 4(5)(a) of CCR,2004 without reversing the Cenvat credit - job worker instead of following the N/N. 214/86-CE, chose to pay the duty on the job worked goods - case of the department is that since the appellant have cleared the cenvatable input under Rule 4(5)(a) of CCR,2004, job worker was not supposed to pay the duty, instead, he was supposed to avail exemption N/N. 214/86-CE - HELD THAT:- As per the Cenvat Credit Rules, 2004, an assessee is entitled for the Cenvat Credit in respect of inputs used in relation to the manufacture of final product - In the present case when the appellant have received the input it was duty paid, hence they have were rightly taken the Cenvat Rule 4(5)(a) provides for movement of the input on which Cenvat Credit was availed . Accordingly such input was sent to the job worker in terms of Rule 4(5)(a) - As regard the Notification No. 214/86-CE being a conditional Notification, it is optional for the job worker whether to avail the exemption or to pay the excise duty. The job worker undisputedly being a manufacturer has option either to avail exemption to avail by duty. In the present case job worker chose to pay the duty without availing the Notification No. 204-CE which cannot be objected, as there is no provision for compulsory availment of Notification No. 214/86-CE. As regard the duty paid by the job worker it is very much in relation to the job work goods, which was undisputedly used by the manufacturer of the final product. The appellant had cleared the final product on which duty was paid by the appellant. This tribunal has taken consistent view that in case of payment of duty by the job worker the same is available as a Cenvat Credit to the principal manufacturer - Reliance can be placed in the case of COMMISSIONERS OF CENTRAL EXCISE, CUSTOMS AND SERVICE TAX-VADODARA-I VERSUS M/S SARABHAI CHEMICALS [2015 (10) TMI 1057 - CESTAT AHMEDABAD]. Therefore, the issue is not res integra and appellant are entitled for the Cenvat Credit of duty paid by the job worker. Appeal allowed - decided in favor of appellant.
|