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TMI Blog2015 (11) TMI 1467X X X X Extracts X X X X X X X X Extracts X X X X ..... emption under notification no. 50/03 in respect of the medicaments manufactured by them. For packing of the Ayurvedic medicines, they received plastic containers for which they purchased duty paid plastic granules and sent the same to the appellant for manufacture of plastic containers on job work basis. M/s. Divya Pharmacy did not avail CENVAT Credit in respect of the plastic granules and appellant also did not avail the CENVAT Credit of duty paid on plastic granules. The appellant manufactured the plastic containers and returned the same to M/s. Divya Pharmacy without payment of duty by availing exemption under notification no. 214/86ECE. In this regard, M/s. Divya Pharmacy under their letter dated 6/5/2008 to the Assistant Commissioner, Central excise Bhiwadi District Alwar, Rajasthan had given the following intimation: "Sub: Undertaking for removal of inputs/finished goods for job work outside the factory in terms of notification no. 214/86, as amended, dated 25/03/1986. 1. M/s. Divya Pharmacy (name of the company), A-1, Industrial Area, Haridwar are registered with Central Excise vide registration no. AAATD/114EXM-001 and are registered in the manufacture of Ayurved ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or exemption under notification no. 214/86CE as they were manufacturing the plastic containers on job work basis out of the raw material received from the principal manufacturer M/s. Divya Pharmacy and the principal manufacturer were using the containers in manufacture of final product in respect of which they were discharging their obligation under Rule 6 of the Central Excise Rules, 2002, inasmuch as they had not taken any CENVAT Credit in respect of the inputs received for manufacture of plastic containers; that in terms of the first para of the exemption notification no. 214/86CE, the goods specified in column (1) of the table to notification and manufactured in factory as a job work are fully exempted from duty if the goods are used, in the manufacture of the final product as specified in column 1 of the table on which either the duty of excise is leviable on whole or in part or the same are used by manufacturer of dutiable and exempted final products after discharging his obligation in respect of the said goods under Rule 6 of the CENVAT Credit Rules, 2002; that in any case if the duty is demanded from the appellant company, they would be eligible for input duty CENVAT Credit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 214/86CE is not applicable inasmuch as neither the Principal manufacturer M/s. Divya Pharmacy has given the undertaking in proper format that the plastic containers received from the appellant would be used in the manufacture of final product which would be cleared on payment of duty nor the final product had been cleared on payment of duty as in respect of the final product manufactured by the principal manufacturer M/s. Divya Pharmacy, full duty exemption under notification no. 50/03CE was being availed; that in terms of the first para of the notification no. 214/86CE , the exemption in respect of the goods manufactured in factory as a job work is available to job worker only when such goods have been used in the manufacture of the final product as specified in the table to this notification on which duty of excise is leviable in full or in part; that since no duty of excise is leviable on the final product manufactured by the Principal manufacturer- M/s. Divya Pharmacy, the goods cleared by the appellant would not be eligible for exemption under notification no. 214/86CE; that the appellant in ER-1 Returns filed by them have not disclosed the manufacture of plastic conta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ure of final products specified in the table to the notification on which duty of excise is leviable in whole or in part. The exemption is available subject to the condition that the principal manufacturer uses the goods in the manufacture of final products which are cleared on payment of duty. This exemption is also available if the goods manufactured as job work are used by the principal manufacturer in manufacture of dutiable and exempted final products and in respect of the exempted final products, he had discharged the obligation under Rule 6 of the CENVAT Credit Rules. The contention of the ld. Counsel for the appellant is that the exemption under this notification would be available, as the principal manufacturer by not taking CENVAT Credit in respect of the plastic granules has discharged his obligation in respect of the exempted final product. In our prima facie view, this contention is not acceptable, as in terms of the provisions of first para of this exemption notification, the duty exemption in respect of the goods manufactured in a factory as a job work by job worker is available if the job work goods are used by the principal manufacturer in the manufacture of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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