TMI Blog2013 (9) TMI 344X X X X Extracts X X X X X X X X Extracts X X X X ..... job work basis or not - Held that:- Availment of CENVAT Credit of duties paid on such inputs in question was absolutely in order, and in accordance with the Scheme of CENVAT Credit Rules - The appellant was entitled to avail CENVAT Credit. Following STERLITE INDUSTRIES (I) LTD. Versus COMMISSIONER OF CENTRAL EXCISE, PUNE [2004 (12) TMI 108 - CESTAT, MUMBAI] - The Scheme of Rule 57C of the erstwhile Central Excise Rules had been similar to the Scheme of Rule 6 of CENVAT Credit Rules now in operation - Under Rule 57F of the erstwhile Rules, removal of duty paid inputs to a job worker for carrying out further operations and processes was permissible and the same scheme of allowing a job worker to produce or process goods using the inputs s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8 to September, 2008. 2. Revenue held that in terms of Rule 11(2) of CENVAT Credit Rules, 2004, a manufacturer who opts for exemption based on value or quantity, the balance of CENVAT credit account would lapse and shall not be allowed to utilize for payment of duty on any excisable goods. Similarly, as per provision of the Notification No. 8/2003-C.E., dated 1-3-2003, the appellant is not entitled to avail the CENVAT credit under Rule 3 or Rule 11 of CENVAT Credit Rules, 2004. 3. It was noticed that the appellant had availed the benefit of value based exemption under Notification No. 8/2003-C.E., dated 1-3-2003 and not reversed the amount of CENVAT Credit lying in balance. The appellant in the ER-1 return of April, 2008, showed the ope ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was submitted that an assessee is availing benefit of SSI exemption can utilized the CENVAT Credit in respect of final product for which he is eligible for CENVAT Credit. It was submitted that the credit taken was only in respect of inputs used for manufacturing goods on job work basis and the goods manufactured on job work basis cannot be said to be exempted. Reliance was placed on the decision of Larger Bench of the Tribunal in the case of Sterlite Industries Ltd. - 2005 (183) E.L.T. 353 (Tri.-LB). He also relied upon several other decisions to submit that the appellant was correct in utilizing the CENVAT Credit for the goods manufactured on job work basis and exemption in respect of other goods is available to SSI unit. 7. Ld. AR would ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Notifications to compute aggregate value of clearances mandate that the clearance of goods bearing brand name or trade name of another person which are ineligible for the grant of exemption shall not be taken into account in determining the aggregate value of clearances. Therefore, value of clearances of goods bearing brand name of third parties without availing the benefit of Notification No. 8/2003 is not reckoned for computing clearance value of Rs. One Hundred lakhs in any year for exemption benefit. From these clause contained in the relevant Notification, it is clear that goods bearing brand name of third parties were not eligible for exemption contained in Notification No. 8/2003. Identical provision existed in Notification No. 9/200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Excise duties in view of exemption of goods produced on job work, and therefore MODVAT Credit of inputs so used in manufacture of goods on job work was not allowed under Rule 57C of the erstwhile Rules. However, the Larger Bench of the Tribunal has held that the job work transactions were outside the purview of Rule 57C and therefore a job worker was legally entitled to avail MODVAT Credit of duty paid inputs received directly by him and used in manufacture of goods on job work basis. That the Scheme of Rule 57C of the erstwhile Central Excise Rules has been similar to the Scheme of Rule 6 of CENVAT Credit Rules now in operation. Under Rule 57F of the erstwhile Rules, removal of duty paid inputs to a job worker for carrying out furthe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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