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2009 (8) TMI 245 - AT - Central ExciseCredit denied and penalty was imposed on the ground that the Appellant availed credit in respect of duty paid on adhesive tapes which are used in respect of the exempted goods - . Contention of Appellant is that they are manufacturing veneer which is being cleared on payment of duty and the adhesive tapes are used in respect of veneer which is cleared on payment of duty. - The Appellant is also undertaking job-work for manufacture of veneer on behalf of the principal and the adhesive tapes were not used in the veneer manufactured on job-work basis as the same was being cleared in wet condition. The Appellant produced copies of challans under which the veneer in green form is being cleared to their principal manufacturer. - The challans are statutory documents. Hence I find merit in the contention of the Appellants - In this regard further I find no investigation was conducted at the end of the principal on whose behalf the green veneer is being manufactured by the Appellants whether the adhesives tapes are applied by the Appellants or by the principal in spite of the fact that in the reply to the show cause notice it was specifically mentioned that the adhesive tapes are not being used by the Appellants in the goods which was manufactured on job work basis. Therefore the impugned order is set aside and Appeal is allowed.
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