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2016 (5) TMI 743 - CESTAT KOLKATA

2016 (5) TMI 743 - CESTAT KOLKATA - TMI - Job worker - Eligibility of Cenvat credit - Inputs directly purchased and used in the manufacture of goods under job-work - Cleared goods without payment of duty as per the provisions contained in Notification No.214/86-CE - Held that:- by following the various case laws, the Cenvat Credit to the job-worker, on inputs directly purchased and used in the manufacture of finished/intermediate goods, will be admissible even if duty is discharged by the princi .....

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er which Order-in-Original dated 28.02.2011 passed by the Adjudicating authority has been upheld. 2. Dr.B.N.Das, (Consultant) appearing on behalf of the Appellant argued that the issue involved in the present proceedings is whether Appellant, being a job-worker, is eligible to take Cenvat Credit with respect to its own inputs purchased and used in the manufacture of intermediate goods which are further used/cleared on payment of duty by the principal manufacturer. Ld.Consultant argued that their .....

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ssible by various High Courts and CESTAT. (i) Shree Uma Foundries Pvt.Ltd. vs. Commissioner of C.Ex., Kol-II- [2008 (222) ELT 317(Tri.-Kol) (ii) Syschem (India) Ltd. vs. Commr. of C.Ex., Panchkula- [2010 (261) ELT 586 (Tri.-Del.) (iii) Commr. of C.Ex., Chennai-IV vs. Kyunsingh Industrial Motherson Ltd. Order dated 19.06.2015 [Madras High Court s website] 2.1 It was further argued by the Appellant that as per Gujarat High Court s judgement in the case of E.I.Dupont India Pvt.Ltd. vs. Union of Ind .....

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it can be taken only by the manufacturer, who discharges duty liability. That in the present case Appellant acting as a job-worker has not discharged any duty liability on the manufactured product and was not eligible to Cenvat Credit. Ld.AR strongly defended the order passed by the First Appellate Authority. 4. Heard both sides and perused the case records. The issue involved in this Appeal is whether Appellant job-worker will be eligible to take credit on inputs directly purchased and used in .....

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d. vs. Commissioner of Central Excise, Pune(supra) has held that credit of inputs used by the job-worker in the manufacture of finished goods will be admissible even if duty is paid by the principal manufacturer. This decision has been upheld by Bombay High Court by rejecting the Appeal filed by the Department. 5. Hon ble Gujarat High Court in the case of E.I. Dupont India Pvt.Ltd. vs. Union of India (supra) has made following observations on the issue of binding nature of decisions/orders passe .....

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art of the lower authorities in ignoring the binding decisions/orders passed by the higher appellate authorities/courts. Still it appears that message has not reached the concerned authorities. In the recent decision in the case of Claris Lifesciences Ltd. (supra) in para 26 this Court has observed as under : 26. Despite such clear and specific directions and authoritative pronouncements, act of issuance of show cause notice by the Deputy Commissioner is wholly impermissible and unpalatable and .....

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ed in the earlier petition of this very petitioner. Resultantly, petition stands allowed. Both the show cause notices dated 21-8-2012 and 22-1-2013 are quashed and struck down. It appears that still the message has not reached the concerned authorities in following the binding decisions of the higher appellate authorities and/or courts solely on the ground that the same is in the case of another assessee. Such a conduct is also required to be viewed from another angle. This would not only amount .....

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