TMI Blog2013 (4) TMI 302X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee, the credit taken was nothing but in respect of what was actually paid. Held that –In the case of Division Bench of this Court of Commissioner of Central Excise vs. M/s. Rohan Dyes and Intermediates Limited [2007 (3) TMI 651 - CESTAT, AHMEDABAD] and Apex Court in M/s. International Auto Ltd. v. Commissioner of Central Excise, Bihar [2010 (1) TMI 151 - SUPREME COURT OF INDIA] If we apply the aforesaid principle to the facts of the present case, there is no dispute that according to the modvat scheme, it is the modvat of such final product which would have to include the cost of the inputs and in respect of which modvat credit could be taken at the time of clearance of the final product and thus, in the facts of the present case, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... raw materials like Beta Napthol, 6 Nitro, PNA, H Acid, etc., both on payment of customs duty as well as without payment of customs duty. According to the Department, while co-relating the raw material imported under the Advance Authorisation Scheme, and Target Plus Scheme, with the inputs consumed for manufacture of final products, it was noticed that the input Beta Napthol was cleared without subjecting it to any further process, but the same was cleared under the cover of job work challans to M/s. Bodal Chemicals Ltd., M/s. Shivam Chemicals, Vapi and M/s. Shree Chemicals, Vapi. However, the material had not been received back after processing under the cover of job work, but finished goods were received under the invoices and Central ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... occurred, inasmuch as the appellant imported the material, and to get the credit, paid the duty on the same, and cleared it for job work, which was available to it under Rule 4(5) of the Cenvat Credit Rules, 2004. The job worker added some additional material, and paid duty again, which was already paid by the appellant, and therefore, the appellant had no alternative but to take credit of the same in the books of account, else, it would have resulted in excess payment. According to the assessee, the credit taken was nothing but in respect of what was actually paid. 4.1 Rule 3(4)(b) inter-alia provides that the CENVAT credit may be utilized for payment of an amount equal to CENVAT credit taken on inputs, if such inputs are removed as such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the manufacture of the intermediate product, namely, the floor plate assemblies. The scheme of Modvat permits the person who clears the ultimate final product to take the benefit of the Modvat scheme at the time of clearance of such final product. The manufacturer of the final product, in this case TELCO, would therefore, be entitled not only to adjust the credit on the inputs supplied by it to the intermediate purchaser such as the appellant but also to the credit for the duty paid by the intermediate purchaser on its products. 4.3 It was further submitted by the learned senior counsel for the respondent that a Division Bench of this court in Commissioner of Central Excise vs. M/s. Rohan Dyes and Intermediates Limited in Tax Appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ption notification bearing no. 241/86 exempting the job workers from paying duty in view of the mandatory provision of Section 5A[1A] of the Act. Similarly, we are also not impressed by the submission of Mr. Ravani that it was a case of sale and not the case of job work so as to attract the aforesaid principle laid down by the Supreme Court in the above case. On consideration of the entire materials on record, we thus hold that the Tribunal below rightly applied the decision of the Supreme Court in the case of International Auto Ltd. [supra] to the facts of the present case and allowed the appeal of the respondents. 6. In light of the above and having been in agreement with the reasons recorded by the Division Bench in M/s. Rohan Dyes an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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