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CCE, Delhi- III Versus Interface Microsystems

2016 (8) TMI 282 - CESTAT CHANDIGARH

Availability of cenvat credit on the services availed by job worker exclusively manufacturing the goods on behalf of respondent. Benefit of exemption under Notification No. 214/86-CE dated 25.3.1986 available or not – Held that:– cenvat credit available. Decision in the case of MRF Ltd. (2014 (1) TMI 822 - CESTAT CHENNAI) is applicable to the facts of this case wherein this Tribunal has examined the Rule 3 of Cenvat Credit Rule 2004 for availing the credit on the service availed by the job worke .....

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security service availed by the job worker, who is exclusively manufacturing the goods on behalf of the respondent. 2. The facts of the case are that during the course of scrutiny, it was revealed that the respondent has availed the credit on manpower and recruitment supply agency service and security service which was availed by the job worker and not by the respondent. Therefore, a show cause notice was issued to the respondent to deny the credit availed on the above services on the premise t .....

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ied on the decision of the Tribunal in the case of Godrej Sara Lee Ltd.-2012 (25) STR 198 and Zenith Machine Tools Pvt.Ltd.-2010 (255) ELT 83 wherein this Tribunal has held that the credit availed by job worker on security service is not entitled for credit to the principal manufacturer. Therefore, the impugned order is to be set aside. 4. On the other hand, learned Counsel appearing on behalf of the respondent submits that the job worker is exclusively manufacturing the goods on behalf of the r .....

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anufacturing the goods on behalf of the respondent by availing exemption under Notification No. 214/86-CE dated 25.3.1986 or not. For better appreciation, Rule 3 of Cenvat Credit Rules, 2004 is extracted herein below:- RULE 3. CENVAT credit- . - (1) A manufacturer or producer of final products or a [provider of output service] shall be allowed to take credit (hereinafter referred to as the CENVAT credit) of - (i) to (x) - [(xi) the additional duty of excise leviable under [section 85 of Finance .....

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products, by a job-worker availing the benefit of exemption specified in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 214/86-Central Excise, dated the 25th March, 1986, published in the Gazette of India vide number G.S.R. 547(E), dated the 25th March, 1986, and received by the manufacturer for use in, or in relation to, the manufacture of final product, on or after the 10th day of September, 2004. " 7. On plain reading of the said rule .....

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principal manufacturer is entitled to avail the credit of the services availed by the job worker. The said issue has been not examined in the case of Godrej Sara Lee Ltd. and Zenith Machine Tools Pvt.Ltd. (supra). Therefore, those decisions are not applicable to the facts of the case. Moreover, in the case of MRF Ltd., this Tribunal has examined the said issued in detail and thereafter this Tribunal has observed as under: 10. I have considered the arguments from both sides. The definition of &q .....

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