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TMI Blog2007 (10) TMI 152X X X X Extracts X X X X X X X X Extracts X X X X ..... FL. are family concerns. The practice which was prevalent during the material period was that M/s. CFL would procure raw material in the name of their sister units including the appellants and allocate these goods to such units depending upon their export quota as determined by the Textile Committee. In the case of the appellants, a major part of the quantity of fabric procured by M/s. CFL in the name of the appellants were retained by them for job work and the balance quantity was supplied to the appellants for conversion to garments. The fabrics so allotted to the appellants for conversion to garments is not a part of the subject-matter of this case. The quantity of fabrics retained by M/s. CFL for conversion into garments as job work for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... les as if he is an assessee. The proviso to this sub-rule gives the job worker option to agree to obtain registration, maintain accounts, pay duty leviable on such goods and comply with other relevant provisions. According to sub-rule 2, if the person who en gages job worker wants to clear excisable goods for home consumption or for exports, from the premises of job worker, he shall pay duty on such excisable goods and prepare an invoice in the prescribed manner except for mentioning the date and time of removal of goods on such invoice. The original and duplicate copies of the invoice so prepared shall be sent to the job worker, from whose premises the job-worked goods are intended to be cleared. The job worker shall fill up the particular ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his sub-rule reads as under :- "(3) The said person may supply or cause to supply to a job worker, the following goods, namely, (a) inputs in respect of which he may or may not have availed CENVAT credit in terms of the CENVAT Credit Rules, 2002, without reversal of the credit thereon; or (b) goods manufactured in the factory of the said person without payment of duty; under a challan, consignment note or any other document (herein after referred to as "document") as described in sub-rule (4), duly signed by him or his authorized agent. (Emphasis added) The appellants would enter into the shoes of the said person and say that, in the aforesaid scheme, they had caused to supply to M/s.CFL (job worker) fabrics (input) on which they had av ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f learned counsel. 4. Sub-rule (7) of Rule 12B enables the job worker to clear the job- worked goods for home consumption or for exports, subject to receipt of an invoice from the person for whom the job work was done. It is not in dispute that the job-worked goods (garments) were cleared for exports from the premises of M/s. CFL (job worker). It is also not in dispute that such exports were made after receipt, by M/s. CFL, of invoice from the appellants. It would thus appear that the requirement of sub-rule 7 was fulfilled in this case. 5. The only two reasons stated by the lower authority for denying CENVAT credit on input to the appellants are that the input was not received in their premises and that they did not themselves undertake ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l requirements under Rule 12B (4). In this connection, he has also relied on the Supreme Court's decision Indian Aluminium Company Ltd, v. Thane Municipal Corporation [1991 (55) E.L.T. 454 (S.C.)], wherein it was held that non-observance of even procedural condition was not to be condoned if it was likely to facilitate commission of fraud or to introduce administrative inconvenience. In the present case, the Revenue has no case that the appellants had caused administrative in convenience or facilitated commission of fraud by not complying with any procedural condition stipulated under Rule 12B. The objection of the Revenue, high lighted before us by learned SDR, is that the appellants did not fulfil the requirements of sub-rule 4 by not rem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. On this basis, it was further alleged that the appellants had not actually received so much quantity of fabrics as shown in the relevant invoices and had taken CEN VAT credit on the entire quantity of .fabrics mentioned in the invoices. In the impugned order, the Commissioner has sustained this allegation also. In this connection, it was argued by learned counsel that, instead of comparing the quantities purchased and consumed for every month, the department should have undertaken comparison of the total quantity of fabrics purchased during the entire period of dispute with the total quantity of fabrics consumed during such period. Had this been done, the difference would have been found to be very minimal. On this basis, learned counsel ..... X X X X Extracts X X X X X X X X Extracts X X X X
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