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2021 (10) TMI 701 - AT - Central ExciseCENVAT Credit - Job-work - exempted service - credit claimed on taxable as well as exempt goods - non-maintenance of separate records - demand of an amount equal to 6% of the value of exempted service - Rule 6(3) of the Cenvat Credit Rules, 2004 - HELD THAT:- Notification No. 214/86-CE (NT) though was effective from April 1996 has been amended extensively vide Notification No. 49/2002 dated 16.09.2002 so as to make the manufacturer accountable for discharging his obligation in respect of goods under Rule 6 of the Cenvat Credit Rules, 2002. As such when the notification was made service was not treated as an taxable incident in India and the said notification has clearly excluded job workers from the purview of payment of excise duty if ultimate manufacturer was to pay the duty at the time of clearance. Therefore, this amendment of 2005 since has only fixed manufacturer liable to comply with Rule 6 of Cenvat Credit Rules, 2004, job worker cannot be asked to comply the same again on the ground that he is also a part of the manufacturing process. There being a clear finding of the adjudicating authority that the processes undertaken by the job worker were incidental and ancillary to manufacturing or production and hence, amounts to manufacture or production of goods that is specifically excluded from the purview of taxable service, which is also found reflected in the written note filed on behalf of the appellant, there is no need to further dwell into the issue with reference to S.No. 30 of the Notification No. 22/2012-ST to interpret the nature of work undertaken by the appellant job worker. When such a finding of the adjudication authority is not appealed against by the respondent department, the work undertaken by the appellant was part of the process of manufacturing and not a services rendered by it to the ultimate manufacturer. The impugned order is hereby set aside exempting the appellant from the liability to pay the amount or interest and penalty confirmed in the adjudication process - appeal allowed.
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