TMI Blog2014 (8) TMI 496X X X X Extracts X X X X X X X X Extracts X X X X ..... ly, it is also not in dispute that finished products did emerge at the job-workers' premises. In these circumstances, the conclusion drawn by the adjudicating authority that there is no job work involved in the present case is a contradiction in terms. A job work might amount to "manufacture" or might not amount to "manufacture". In many instances the job work results in production of a new commodity. For example, in the case of textile fabrics, a job-worker undertaking the process of bleaching or dyeing of fabrics, new products namely, dyed/bleached fabrics come into existence. Thus, the activities amount "manufacture". Similarly, in the case of a bus body built on a chassis, the activity amounts to "manufacture". Therefore, it cannot be s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ings and designs provided by the appellants. The job-workers also some times procured components as such pipes, fittings, etc. After the fabrication work was completed, the goods were inspected and tested by the appellants and thereafter, despatched from the job-worker's premises to the various buyers of the goods on payment of appropriate excise duty. The movements of inputs or partially processed goods by the appellant to the job-workers was undertaken under Rule 4 (5) (a) of the Cenvat Credit Rules, 2004. The appellant was also granted permission under Rule 4 (6) of the said Rules for clearance of the finished goods from the job-workers' premises to the end customers on payment of duty by the appellant. There is no dispute about ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ished product has emerged it cannot be said that no manufacture has taken place. Since the Cenvat Credit Rules provides for availing of Cenvat Credit on the activity of manufacture, the findings of the adjudicating authority that job work undertaken by the vendors is not a manufacturing process is clearly contradictory and is not sustainable in law. 3.1 As regards the second contention of the Revenue that the appellant took Cenvat Credit of the inputs produced by the job-workers/vendors without the receipt of the goods into their factory, it is submitted that the value of the goods, which job-workers procured and used in the assembly/fabrication has been included in the value of the finished products sold from the job-workers' prem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lant in the present case. Cenvat Credit Scheme envisages that for taking of credit, inputs/input service should be received by the manufacturer. In the present case, part of the inputs have been received by the vendor/job-worker and the appellant herein has taken credit and therefore, there is violation of the Cenvat Credit scheme. It is also his contention that the activity of fabrication/fitment of various components of the hydraulic power pack does not amount to job-work but amounts to manufacture itself and therefore, the provisions of Rule 4 (5) (a) has been violated. In these circumstances, the confirmation of duty demand by denying the Cenvat Credit is sustainable in law and accordingly he pleads that the appellant be put to terms. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assis, the activity amounts to manufacture . Therefore, it cannot be said that since the activities undertaken result in a new commodity, there is no job-work involved. In view of the above, we do not find any merit in the Revenue's contention that merely because a finished products emerged as a result of the activity undertaken by the appellant, the same is not job-work. 5.2 As regards the second contention that the appellant took credit on the components purchased by the job-workers without receiving the goods in their premises, the erstwhile Central Excise Rules provided for such a situation. In the Cenvat Credit Rules, 2004, these specific provisions which allowed the appellant to take credit in respect of materials directly rec ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
