9911796707
TMI Blog1994 (12) TMI 198X X X X Extracts X X X X X X X X Extracts X X X X ..... /- PMT on copper bars and copper rods used as inputs in the manufacture of their final products viz. copper winding wires during the period 12-7-1986 to 31-3-1987. 2. We have heard Smt. Archana Wadhwa, learned Advocate for the appellants and Shri M.M. Mathur, learned JCDR for the Revenue. 3. The appellants herein are a public limited company engaged in the manufacture of copper winding wires classifiable under Heading No. 8544 of the Schedule to the Central Excise Tariff Act, 1985. The effective rate of duty on the said goods during the material period was 15% ad valorem as per serial No. 2 of Notification No. 69/86-C.E., dated 10-2-1986 as amended by Notification No. 163/86-C.E., dated 1-3-1986. The main raw material used as an 'input' i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (P) Ltd., Noida for further rolling and conversion into rods in their unit on job work basis. Simultaneously a book entry of receipt of the above goods was made in the RG 23-A Part-I wherein a remark was made that the appellants shall be availing modvat credit of additional duty of customs paid on the said inputs @ Rs. 3300/- PMT on receipt of copper rods from the said M/s. Deep Sons, Noida after rolling. M/s. Deep Sons, Noida, after rolling the bars, despatched the rods (classifiable under Tariff sub-heading 7403.19) to the appellant's factory, clearing the same from their unit after paying Central Excise duty @ Rs. 2900/- per metric tonne under Notification No. 149/86-C.E., dated 1-3-1986, which prescribed effective rate of duty on the w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the customs duty @ Rs. 3300/- PMT at the time of purchase of copper bars from MMTC, Ludhiana for which they were entitled to take credit under Rule 57A. The Collector (Appeals) however, held that the modvat credit was admissible only to the extent of Rs. 2900/- i.e. excise duty paid on the copper rods by M/s. Deep Sons, Noida and that the credit was not admissible in respect of additional customs duty of Rs. 3300/- PMT paid on copper bars purchased by the appellants from MMTC and sent for rolling to M/s. Deep Sons on job work basis. 7. There is no dispute that the job workers herein returned the copper wire bars sent to them by the appellants after converting them into copper rods, upon payment of duty @ Rs. 2900/- PMT under Notification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, sheets, blanks (Including circles) strips and foils of copper Rs. 1200/- per tonne. Provided that the said goods are made from copper and articles thereof (hereinafter referred to as "inputs"), falling under the heading Nos. 74.01 to 74.10 of the said Schedule and on which the duty of excise leviable under Section 3 of the Central Excises and Salt Act, 1944 (1 of 1944) or the additional duty leviable under the Customs Tariff Act, 1975 (51 of 1975) as the case may be, has already been paid: Provided further that no credit of the duty paid on the said inputs has been taken under rule 56A or rule 57A of the said rules: Provided also that nothing contained in this notification shall apply to copper and articles thereof produced or manufa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the duty and takes the consequence of payment of duty, and the normal procedure applicable for availing of modvat credit in respect of duty paid goods can be followed by the manufacturer of the final product. In the present case the job worker has chosen to pay the duty and after clearance of the same, the appellants had taken modvat credit in respect of the duty paid by the job worker who has not taken credit in respect of inputs received by him. It has been held by the Tribunal in the case of Facit Asia Ltd. v. Collector of Central Excise 1991 (54) E.L.T. 347 that a job worker cannot be forced to avail of the benefit of Notification 214/86 and the choice is with him in regard to availment of benefit of notification. The payment of duty on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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