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2009 (9) TMI 458 - AT - Central ExciseCenvat Credit- Inputs- The appellant manufacture rough steel forging for themselves as well as for a principal manufacturer on job work basis. In case of manufacture of rough steel forgings on job work basis, they received the inputs-alloy steel rounds, from the principal manufacturer, but they used their own furnace oil, RFO and LDO for which they took Cenvat credit. The rough steel forgings manufactured on job work were cleared to the principal Manufacturer without payment of duty under Notification No. 214/86-C.E. and the principal manufacturer thereafter cleared the finished goods on payment of duty. The point of dispute is as to whether in such a situation, the appellant is eligible for Cenvat credit of duty on LDO, Furnace Oil and RFO. The Asstt. Commissioner holding that they would not be eligible for Cenvat credit of duty on LDO, Furnace Oil and RFO, confirmed Cenvat credit demand alongwith interest and imposed the penalty. The Commissioner (Appeals) vide impugned order-in-appeal upheld the Asstt. Commissioner’s order. It is against this order that the present appeal has been filed by the appellant. Held that- Just because the appellant in addition to manufacture of rough forgings on job work basis, also manufactured the rough forging for themselves, they do not cease to the job worker and therefore, I hold that the ratio of the Tribunal’s judgment in the case of Sterlite Industries (I) Ltd. v. CCE is squarely applicable to this case. In view of this, the impugned order is not correct and the same is set aside. The appeal is allowed.
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