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2016 (12) TMI 1268 - CESTAT KOLKATA

2016 (12) TMI 1268 - CESTAT KOLKATA - TMI - CENVAT credit - job-work - denial on the ground that the appellant has not discharged any duty on TMT bars - Held that: - the Larger Bench of the Tribunal in the case of Sterlite Industries (I) Ltd. [2004 (12) TMI 108 - CESTAT, MUMBAI], held that job-worker received goods from the principal under Rule 57E of the erstwhile Central Excise Rules, 1944, entitled to take credit of duty in respect of other inputs used by him in the manufacture of job-worked .....

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The appellants were supplied the ingots by M/s SRMB Udyog and after conversion of the said ingots into bar, the same were returned back to the said supplier. It is the submission of the ld.Counsel that during the process of conversion, the appellant i.e. job-worker availed cenvat credit on furnace oil, which is used by the appellants for manufacture of TMT bars of job work. The credit taken on the furnace oil is sought to be denied by the Department on the ground that the appellant has not disc .....

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t is his contention that this judgement has been subsequently followed in a number of cases, where job workers have been allowed the credit of materials procured by them and used in the manufacture of product during the process of job work. The ld.Advocate further submits that the invocation of extended period is not tenable as there was no suppression since all the relevant particulars like challans and the entire process was duly disclosed to the Department from time to time. 2. The ld.A.R. ap .....

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nt of credit was objected by the Department for the reason that since no Excise duty was being paid by the appellants on such TMt Bars, sheets and sections, they are entitled to avail cenvat credit in terms of Rule 3 read with Rule 6 of CER, 2002. I find that the period under dispute is from 2005-2006 to 2006-2007 and the credit has been denied to ₹ 14,97,173/- and equal amount of penalty under Section 11AC of the Central Excise Act, 1944, has been imposed. 4. I find that the Larger Bench .....

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ot considered the Larger Bench s decision on the ground that the said decision relates to erstwhile Central Excise Rules. I find that the Tribunal on the identical issue under the Cenvat Credit Rules, 2004, allowed the appeal of the assessee following the decision of the Larger Bench of the Tribunal in Sterlite Industries (I) Ltd., as under : (i) Prerna Fine Chem Pvt. Ltd. Vs. CCEx., Thane I : 2015 (38) S. T. R. 693 (Tri.-Mumbai) ; (ii) MPI Paper Pvt. Ltd. Vs. CCEx., Mumbai I : 2016 (336) ELT 86 .....

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