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2016 (1) TMI 381 - CESTAT AHMEDABAD

2016 (1) TMI 381 - CESTAT AHMEDABAD - TMI - Denial of refund claim - job worker and erroneously paid duty on clearance of job work material - Held that:- CENVAT Credit shall be allowed even if inputs or capital goods sent to job worker for further processing, testing, repair etc. for the manufacture of intermediate goods necessary for the manufacture of final product, and it is established from the records that the goods are received back in the factory within the stipulated period. So, Rule 4(5 .....

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e fermenters/columns supplied by the Appellant were admittedly not used in the manufacture of final product viz. pharmaceuticals or chemicals. - decided against Assessee. - Appeal No.E/260/2012 - Order No. A/11405/2015 - Dated:- 9-10-2015 - MR. P.K. DAS, MEMBER (JUDICIAL) For the Appellant: Shri Prasad Paranjape, Advocate For the Respondent: Shri T.K. Sikdar, Authorised Representative ORDER Per: P.K. Das The relevant facts of the case, in brief, are that the Appellants were engaged in the manufa .....

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d that they are job worker and erroneously paid duty on clearance of job work material. The Adjudicating authority rejected the refund claim, which was upheld by the Commissioner (Appeals). 2. The learned Advocate on behalf of the Appellant submits that the Appellants received the material under the challan issued under Rule 4(5)(a) of the CENVAT Credit Rules, 2004 and after due process returned the goods to the principal for use as capital goods within their factory. So, no duty is payable on t .....

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i-II 2014 (307) ELT 528 (Tri-Mum.) ii) Mukesh Industries Ltd Vs CCE Ahmedabad 2009 (238) ELT 203 (Tri-Ahmd) ii) M.Tex & D.K. Processors (P) Ltd Vs CCE Jaipur 2001 (136) ELT 73 (Tri-Del), upheld by HSC as reported in 2002 (146) ELT A 309. 3. The learned Authorised Representative for the Revenue reiterates the findings of the Commissioner (Appeals). He submits that the Rule 4(5)(a) particularly provides that the goods will be used in the manufacture of final product. In the present case, the g .....

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erial as it was received under Rule 4(5)(a) of CENVAT Credit Rules, 2004. The relevant portion of the said Rule 4(5)(a) is reproduced below:- (5)(a) The CENVAT credit shall be allowed even if any inputs or capital goods as such or after being partially processed are sent to a job worker for further processing, testing, repair, re-conditioning (or for the manufacture of intermediate goods necessary for the manufacture of final products) or any other purpose, and it is established from the records .....

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VAT credit or otherwise, but the manufacturer or provider of output service 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. 5. On a plain reading of Rule 4(5)(a) of the said Rules, it is clear that the CENVAT Credit shall be allowed even if inputs or capital goods sent to job worker for further processing, testing, repair etc. for the manufacture of intermediate goods necessary for the manufa .....

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Revenue, the job work material was not used for the manufacture of final product by the principal, as it is engaged in the manufacture of Pharmaceuticals or Chemicals. The Appellant received the Iron and Steel articles and manufactured fermenters/columns on job work basis which were not used in the manufacture of pharmaceuticals or chemicals. Apparently, it is evident from the records that the job work material were not used in the manufacture of final product of the principal and therefore, it .....

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