2005 (1) TMI 565

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..... JDR, for the Respondent. [Order]. - Heard both sides. The appellants cleared certain inputs, on which credit was taken, to their job worker without payment of duty. Consequently, the job worker did not take any credit on these inputs. There is a provision in the rules under which the job worker could have returned the inputs after processing without payment of duty. However, the job worker pai .....

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..... ithout payment of duty. The facts in present case are similar. The appellants have taken credit of duty in the first place on the inputs and then they have taken credit of duty paid on the processed inputs. The rules provided a choice to pay duty on the inputs, credit of which could have been taken by the job worker while paying the duty on the processed goods. There was also a choice to clear the .....

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..... f the appellants that duty credit is not deniable in such cases where the job worker pays the duty on the intermediate components. 3.In view of my findings as above, I am of the view that the duty demand against the appellants is not sustainable. Accordingly, I set aside the order passed by the lower authorities with consequent benefit to the appellant. The appeal is allowed. (Pronounced in Cour .....

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