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2014 (10) TMI 125 - AT - Central ExciseCENVAT Credit - Job work - Whether CENVAT Credit is required to be denied, in view of the provisions of Rule 6(2) of CENVAT Credit Rules to the Respondent with respect to credit taken on common inputs/raw material used in the manufacturing of final product on job work basis under Notification No.214/86-CE dt.25.03.1986 read with Rule 4(5)(a) of the CENVAT Credit Rules - Held that:- both the lower authorities have given a categorical finding that Notification No.214/86-CE is, though an exemption notification, but the same is prescribing a procedure to delay the payment of duty and is subject to payment of duty on the finished goods by the supplier of the raw material. Notification No.214/86-CE is only a device to postpone duty payment when read with the provisions of Rule 4(5)(a) of the CENVAT Credit Rules. Even if a job worker pays duty on the goods manufactured by him the same will be eligible as CENVAT Credit to the supplier of the raw material making it a totally revenue neutral situation. Following decision of Sterlite Industries (I) Ltd Vs CCE Pune [2004 (12) TMI 108 - CESTAT, MUMBAI] and Kinetic Engn. Ltd Vs CCE Pune-II [2006 (5) TMI 410 - CESTAT, MUMBAI] - Decided against Revenue.
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