9911796707
TMI Blog2014 (3) TMI 203X X X X Extracts X X X X X X X X Extracts X X X X ..... on to manufacture of their final products. The period of dispute in this case is from Oct.'2006 to March'2011 and April'2011 to Jan.'2012. During this period the Appellant were receiving certain excise duty paid inputs in respect of which they were availing the Cenvat Credit and thereafter, they were sending the Cenvat Credit availed inputs to their job workers without reversing the Cenvat Credit, in terms of the Provisions of Rule 4(5)(a) of Cenvat Credit Rules, 2004. The job workers processed the inputs received free of charge from the Appellant and in course of processing used some of their own inputs in respect of which they had taken the Cenvat Credit. The processed inputs (intermediate products) were cleared by job workers to the Appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11AB of Central Excise Act, 1944 and also sought imposition of penalty on the Appellant under Rule 15(2) of the Cenvat Credit Rules, 2004 read with Section 11AC of Central Excise Act, 1944. The First Show Cause Notice was issued invoking extended period under Proviso to Section 11 A(1) of the Central Excise Act. 1.2 Both the Show Cause Notices were adjudicated by the Commissioner vide order-in-original No. 43-44/2012 dt. 13.09.12 by which the above two Cenvat Credit demands were confirmed against the Appellant along with interest U/S 11AB and penalty of equal amount was imposed under Rule 15(2) ibid. Against this order of the Commissioner, this appeal has been filed along with stay application. 1.3 Though the stay application had earlier ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k Cenvat Credit of the duty paid by the job-workers and just because in respect of the inputs which were processed by the job workers into intermediate products, Cenvat Credit had been taken by the Appellant, Cenvat Credit of duty paid on the intermediate products cannot be denied to the Appellant, as the inputs have suffered duty twice- first in the hand of input manufacturers from whom the Appellant had procured the inputs and second time in the hand of the job workers as part of the value of intermediate products manufactured by them. He further pleaded that in any case, the intermediate products manufactured by the job-workers are products different from the inputs and therefore, Cenvat Credit of the duty paid on the same cannot be deni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts. In this regard Rule 4(5)(a) is reproduced as under for appreciation of object of the grant of the Cenvat Credit:- (5)(a) the Cenvat Credit shall be allowed even if any inputs or capital goods as such or after being partially processed are sent to a job worker for further processing, testing, repair, re-conditioning [or for the manufacture of intermediate goods necessary for the manufacture of final products] or any other purpose, and it is established from the records, challans or memos or any other document produced by the manufacturer or provider of output service taking the Cenvat Credit that the goods are received back in the factory within one hundred and eight days of their being sent t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inputs of their own used by the said job workers for manufacture of the intermediate products. The Department seeks to deny the Cenvat Credit of the duty on the intermediate product paid by the job-workers on the ground that on the same inputs, Cenvat Credit cannot be availed twice - first at the time of receipt the inputs by the Appellant in their factory from the input manufacturers and second time in respect of duty paid on intermediates goods made out of input supplied by Appellant upon receiving the same from the job workers. Logically, the ground on which the Cenvat Credit is sought to be denied is totally incorrect. There is no condition in Rule 4(5)(a) of the Cenvat Credit Rules, 2004 that job worker should necessarily avail of ful ..... X X X X Extracts X X X X X X X X Extracts X X X X
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