TMI Blog2013 (6) TMI 580X X X X Extracts X X X X X X X X Extracts X X X X ..... that the credit can be taken in respect of inputs sent directly to the job-worker only when the same are received from the job-worker. - Credit allowed - decided in favor of assessee. - E/220/2007 - A/10417/WZB/AHD/2013 - Dated:- 2-1-2013 - M V Ravindran And B S V Murthy, JJ. For the Appellant : Mr S R Dixit, Adv. For the Respondent : Mr K N Joshi, AR Per: B S V Murthy: The appellant is engaged in the manufacture of pharmaceutical products and medicaments falling under Chapters 19, 21, 22, 28, 29 30 of the Schedule to the CETA, 1985. The appellant is availing of the MODVAT credit in respect or duty paid on the inputs under Rule 57A.The appellant also sends some of these inputs to the factory of the job-worker for furthe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Part I account, on the basis of copies of Central Excise invoices or Bills of Entries received by the appellant. The job-worker of the appellant, after processing the inputs, as per the requirement, returned the same to the appellant on different dates. The appellant thereafter availed of MODVAT credit in RG23A Part II. Proceedings were initiated by way of issue of show-cause notice dated 15.9.1999 which resulted in denial of MODVAT credit amounting to Rs. 11,60,818/- with interest. 2. The learned counsel on behalf of the appellant submitted that the stipulation of six months period for availment of credit under Rule 57G(5) of Central Excise Rules, 1944 (Rules) applies only to those inputs which are received in the factory of the manufac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... int No. 3 of CBEC Circular No. 265/99/96-CX dated 12.11.1996, wherein it is clarified that the credit can be taken in respect of inputs sent directly to the job-worker only when the same are received from the job-worker. 4. The learned Authorised Representative, on the other hand, drew our attention to Rule 57(J) of Central Excise Rules and also submits that according to provision of Rule 57G(5), where inputs which were sent to a job-worker for processing and intermediate products are received, the credit can be taken after nine months and the legislature has provided an additional three months taking into account the fact that inputs are not received by the manufacturer directly but sent to the job-worker. Therefore, the time limit of ni ..... X X X X Extracts X X X X X X X X Extracts X X X X
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