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2023 (3) TMI 1170 - HC - Central ExciseRecovery of CENVAT Credit - availing double CENVAT credit - Once paid on import / based on BE and second paid by Job-Worker on the same inputs - CVD on imported raw materials directly sent to the job worker in terms of Notification No. 214/86-CE dated 25.3.1986 - interpretation of Rule 3 of CENVAT Credit Rules, 2004 - HELD THAT:- On a conjoint reading of Rule 3(1) and Rule 4(5)(a) of the CENVAT Credit Rules, 2004, it is clear that an assessee can avail CENVAT credit of CVD paid on inputs duly imported by him, and, also can take credit of duty paid on inputs/capital goods even though inputs are used by the job worker for executing a job work. In case, the job worker opts to pay excise duty despite having exemption (Notification No. 214/86), the supplier can also take credit of duty paid by the job worker. In the case in hand, it is not in dispute that the job worker was liable to pay duty, if he did not avail the benefit of Notification No. 214/86, as the intermediate product manufactured by them was dutiable and availment of Notification No.214/86 is not mandatory. Thus, the respondent had correctly taken the credit of the duty paid by the job worker and they are also entitled to CENVAT credit of CVD paid on such inputs. It is a case of double payment of duty on same inputs. The payment of duty twice is not disputed, thus, it would be unfair and against the scheme of CENVAT to deny credit of said duty. This aspect has already been considered by the High Court of Gujarat in COMMR. OF C. EX., AHMEDABAD-I VERSUS ROHAN DYES & INTERMEDIATED LTD. [2013 (4) TMI 277 - GUJARAT HIGH COURT] where it was held that the CENVAT credit is admissible to principal manufacture of the duty paid by the job worker, even if the credit was availed earlier on receiving the inputs, specifically when it is not disputed that the job worker had not taken any credit in respect of inputs imported by the respondent. There are no substantial question of law arises out of the present appeal - appeal dismissed.
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