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TMI Blog2014 (9) TMI 809X X X X Extracts X X X X X X X X Extracts X X X X ..... appellant only on the ground that the job worker had included the cost of material and the appellant had availed CENVAT Credit of the duty paid on such materials. 4. There is no dispute as to the fact that the appellant had removed the inputs to the job worker for further processing; the said semi-processed goods are cleared by the job workers on payment of appropriate Central Excise duty by including the value of the inputs; the job worked items are further consumed in the factory premises of the appellant for manufacturing of finished goods on which Excise duty is paid. The only ground on which the CENVAT Credit is sought to be levied is that the appellant herein had availed CENVAT Credit of Central Excise duty paid on the inputs which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der 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 to a job worker and if the inputs or the capital goods are not received back within one hundred eight days, the manufacturer or provider of output service shall pay an amount equivalent to the Cenvat credit attributable to the inputs and he can take the Cenvat credit again when the inputs or capital goods are received back in his factory or in the premises of the provider of output service. 7. Thus on perusal of the above Rule, it is clear that a manufacturer who has availed Cenvat credit in respect of inputs, can send those inputs to his job worker for further processing, testing, repair, rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o 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 full duty Exemption under Notification No. 214/86-C.E. This exemption being a conditional exemption, is not required to be compulsorily availed by job workers. If the job worker decides to pay the duty on the intermediate products manufactured by him on job-work basis for the principal manufacturer, in terms of the judgment of the Apex Court in case of Ujagar Prints v. Union of India, reported in 1989 (39) E.L.T. 493 (S.C.), they would be required to pay duty on the cost of input plus job charges including the cost of their own inputs used in manufacture. This is what the job workers have done ..... X X X X Extracts X X X X X X X X Extracts X X X X
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