TMI Blog2014 (8) TMI 285X X X X Extracts X X X X X X X X Extracts X X X X ..... by them. The show cause notice or the Order- in-Original doesn't question the applicability of exemption notification no. 214/86-CE in respect of the job workers. If the contention of the adjudicating authority that the Appellant themselves did not carry out any processes amounting to manufacture (and hence no Cenvat credit can be allowed to them on the raw material) then the Appellant would not be liable to pay duty either. Nowhere this notification stipulates that the principal manufacturer must carry out some operations amounting to manufacture. It is also a fact that the job worker works on behalf of the principal manufacturer. It is also not disputed that the final product emerged as a result of subjecting the raw material to proces ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... MS Bars/Rods and sent them to the job workers for carrying out the process of cutting, straightening, threading, forging and trimming for manufacture of threading rods, Ledger Blade and Jack Nuts etc. The job worked item were received back by them in their factory where the threaded rods were straightened phosphated, oiled/zinc-plated, inspected and packed. 4. The main ground for disallowing the Cenvat credit of duty paid on the raw material sent by the Appellant to job workers is that the processes carried out by the Appellant do not amount to manufacture while as per Rule 2 (k) of the Cenvat Credit Rules 2004, it is claimed in the show cause notice, to be called input, the raw material on which the Appellant took credit was required to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng of goods received from job worker premises are incidental to the completion of manufacture and assessee not exported inputs as such. The credit cannot be denied to the assessee. (iv) Hon'ble CESTAT, New Delhi in the case of M/s. Mittal Pigments Pvt. Ltd. Vs. CCE - 2013-TIOL-634-CESTAT-DEL has held that even if process undertaken is treated as not manufactured, since undisputedly the appellant has paid duty which is more than the Cenvat Credit availed the payment of duty has to be treated as reversal of Cenvat credit as the department cannot proceed to demand Cenvat credit again in respect of input. (v) There is no suppression or willful misstatement and the demand is time-barred. They referred to several other si ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manufacture was being done by them. They have contravened the provisions of Rule 2(k) and of Cenvat Credit Rules, 2004 and taken and utilized credit that was not admissible to them in first place. They have further used this fraudulently taken credit in paying duty on goods, cleared for home consumption and exported out of India, that are not covered under the definition of manufactured goods in terms of Section 2(f) of the Act and were not excisable goods in the first place and did not attract any duty of excise in terms of Section 3 of the Act. If the fact of the notice not having done any activity amounting to manufacture not come to notice of the staff of department when they visited the unit of the notice on 12.12.08, the notice would ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oses of this notification, the expression job work means processing or working upon of raw materials or semi-finished goods supplied to the job worker, so as to complete a part or whole of the process,resulting in the manufacture or finishing of an article or any operation which is essential for the aforesaid process. The exemption contained in this notification shall be 2. applicable only to the said goods in respect of which,- (i) the supplier of the raw materials or semi-finished goods avails of the credit of duty paid on inputs under rule 57A of the said Rules, and gives an undertaking to the Assistant Collector of Central Excise having jurisdiction over the factory of the job worker that the said goods will be used in o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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