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2018 (2) TMI 208 - AT - Central ExciseCENVAT credit - capital goods directly sent to the job worker - Held that: - The provisions of Cenvat Credit Rules which are in dispute are very clear. No doubt, there is beneficial provision available which allows for input or input services to be received directly by the job worker and credit thereof to be taken by the manufacturer of the final product / provider of output service. However, the law does not allow for taking such credit when the capital goods are similarly received directly at the job worker's end - The permission accorded under Rule 4 (5) (a) or for that matter, the permission to operate under N/N. 214/86-CE is only to facilitate movement of capital goods to the job worker for manufacture of intermediate / final products - the order of recovery of cenvat credit amount ₹ 93,04,021/- along with interest thereon. Penalty - Held that: - the entire manner of job work got done by the appellant was within the knowledge of the department - there is also no allegation that the goods, though received directly at the job worker's end, were not used for the purpose they were intended, or for that matter, that they were not returned back to the appellant etc. - penalty set aside. Appeal allowed in part.
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