TMI Blog2006 (9) TMI 337X X X X Extracts X X X X X X X X Extracts X X X X ..... procedures prescribed under this Notification have been brought out or shown to us, we would consider that the input credit which was availed by these appellants and thereafter their having obtained goods manufactured exclusively and completely on job work outside the premises, they could use such credit to discharge the duty liabilities under the provisions of notification from such credit accounts as well as from their personal ledger account which in the applicants admitted position that they have. In view that we are taking as long as the job working is allowed, we cannot insist on a manufacturing factory will be having any machine or machinery in their premises to be a sine qua non to call for registration under the law or a liabil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and hence the appellants were not eligible for availing credit of duty during the period January 2004 to November 2004. They were also called upon to show cause as to why recovery should not be effected with interest and as provided under Section 11AB and penalties should not be imposed under Rule 13 of the Cenvat Credit Rules. 3. The Notice was contested. They were heard and vide Order dated 24-10-2005, the Ld Commissioner confirmed the recovery of the amounts as proposed in the Notice and imposed a penalty of Rs. 50.00 lakhs on the appellant along with demand of interest at the appropriate rate. Hence the present appeal. 4. It is not contested that at Unit No V, there was no machinery installed. However, there was a premises where th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y goods by the Central Government, by notification in the Official Gazette, as amounting to manufacture, and the word manufacturer shall be construed accordingly and shall include not only a person who employs hired labour in the production or manufacture of excisable goods, but also any person who engages in their production or manufacture on his own account; These definitions nowhere prescribe that such manufacturer should have any machinery to carry on the said functions. It is well settled that all functions necessary to complete and bring out an excisable product need not be carried out in the same premises owned by the same person. The activities amounting to manufacture or on job work need not amount to manufacture keeping a f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to another would envisage the scenario of the entire manufacturing processors by use of machinery as required to be done outside the premises of the registered manufacturer and the registered manufacturers need not have any of those machine and machinery required to conduct one or all of those job work processes. In this view of the matter, we find nothing amiss in the appellant having form out their entire production on job work to various job worker/manufacturers under the provisions of Notification 214/86-C.E. since no charge on violation of the procedures prescribed under this Notification have been brought out or shown to us, we would consider that the input credit which was availed by these appellants and thereafter their having obta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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