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2016 (12) TMI 984 - CESTAT NEW DELHIReversal of CENVAT credit - job-work - inputs sent to job-worker not received fully - Held that: - We find that BHEL have categorically asserted that there will certainly be a process loss and also emergence of scrap in the form of off-cuts and other pieces. BHEL requires the product with a particular specification and length. The generation of such specified intermediate products will result in certain end cuttings and also certain process loss. This much cannot be disputed - If the resultant product has to meet the standard specification of the principal manufacturer, off-cuts and the copper scrap, which is not useable for the intended purpose or further use by the principal manufacturer, are retained by the job workers and have been put to profitable use in further manufacture of various other items - In such situation, we find that there is no justification for reversal of any credit availed on inputs by BHEL. There is no allegation of diversion of inputs or unaccounted clearance of the same either at the BHEL side or at the end of the job work- manufacturer - We find that there is no violation of provisions of Rule 4 (5)(a) of Cenvat Credit Rules, 2004 read with provisions of Notification No.214/96-CE. - no merit in the impugned order and the same is set aside - appeal allowed - decided in favor of assessee.
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