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2015 (10) TMI 1360 - CESTAT AHMEDABAD

2015 (10) TMI 1360 - CESTAT AHMEDABAD - TMI - SSI Exemption - Job work - Modvat / CENVAT Credit - exemption from payment of duty under Notification No. 8/99-CE dated 28.2.1999 and Notification No. 8/2000-CE dated 01.3.2000 - Held that:- Appellant supplied components to job workers under Rule 57S(7) of the erstwhile Central Excise Rules, 1944. It is seen that the job workers, after processing (alignment etc.) supplied capital goods namely, Reactor Vessel, Sigma Mixer Machine and Mixer Muller. The .....

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43 / 2015 - Dated:- 28-4-2015 - Mr. P.K. Das and Mr. H.K. Thakur, JJ. For The Appellant : Shri S. Suriyanarayanan, Advocate For The Respondent : Shri J. Nair, Authorised Representative Per : Mr. P.K. Das; The applicant filed the application for change of Cause Title, insofar as the applicant s name M/s. Micro Inks Limited would be M/s. Micro Inks Private Limited . In support of their contention, the applicant enclosed a certificate of incorporation consequent to conversion of the Company from Pu .....

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manufacture of Pigments, Varnish and Miscellaneous Chemicals falling under Chapter 32, 24, 38 and 39 of the Schedule of the Central Excise Tariff Act, 1985. They availed CENVAT/modvat credit on capital goods namely Fluid Coupling, Geared Coupling, Electric Motors, Gear Box as components/ spare parts of the machines. The appellant supplied the components to the job workers under Rule 57S of the erstwhile Central Excise Rules, 1944. After processing/ re-working by using the components supplied by .....

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01.3.2000. Condition No. (iii) of Para 2 of Notification No. 8/2000-CE (supra) stipulates that the manufacturer availing the notification shall not avail cenvat credit. The adjudicating authority confirmed the demand of modvat credit and also imposed penalty of equal amount. Commissioner (Appeals) upheld the adjudication order. 4. Learned Advocate appearing on behalf of the appellant submits that there is no dispute that the appellant supplied the duty paid components to the job-workers, who aft .....

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ods supplied was not considered in the aggregate value of SSI exemption notification. It is submitted that this Tribunal in the case of M/s. Mech Form vs. CCE, Daman by Final Order No. A/870-871/WZB/AHD/2010 dated 23.6.2010, has allowed the appeal of the assessee. It is submitted that the said order of the Tribunal was upheld by the Hon'ble Supreme Court by Order dated 30.7.2012 in Civil Appeal Nos. 1059-1060 of 2011 in the case of Commissioner of Central Excise & Customs, Daman vs. M/s. .....

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d by them. The learned Authorised Representative strongly relied upon the decision of the Tribunal in the appellant s own case, where the Tribunal remanded the matter. 6. We find that this issue has already been settled by the Tribunal in the case of Mech Form. The Commissioner (Appeals) observed that the appellant availed modvat credit by routing these components through the job workers and suppressing the value of Sigma machinery by not including the value of the capital goods in the assessabl .....

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he appellant s premises were visited by the officers on 13.12.2000 and it was found that they were receiving the various capital goods like electric motors, gear boxes, fluid coupling and gear coupling free of cost from their customers by assembling/installation in Sigma machines manufactured by them. As such, the capital goods were being procured under the cover of Annexure II challans from their customers, who were availing Modvat credit on the same and were sending the same to the appellant u .....

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a show cause notice dt.25.06.03 was issued to the appellant for demanding duty and imposing penalty. The notice culminated into an order passed by the Assistant Commissioner, Central Excise, confirming demand of duty of ₹ 2,13,902/- and imposing equivalent penalty under Rule 173Q(1) and imposing penalty of ₹ 10,000/- each on other appellants. The said order of the Assistant Commissioner was confirmed by the Commissioner (Appeals) and hence the present appeal. 4. After hearing both si .....

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repairs and reconditioning of the said capital goods and return the same to his factory. The appellant s contention of job work cannot be accepted as the machines were sold to the customers and the Annexure II challans were to camouflage non-inclusion of the value of the said components. 5. Learned advocate submits that even if the Revenue s case of complete manufacture of goods is accepted, even then the benefit of Notification No.214/86-CE which allows use of capital goods manufactured on job .....

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