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2017 (5) TMI 234 - CESTAT NEW DELHI

2017 (5) TMI 234 - CESTAT NEW DELHI - TMI - CENVAT credit - job-work - machined/ finished forgings received from the job worker - The Revenue objected to such credit on the ground that the appellants attempting to take double benefits on the inputs which is not permitted by the law - Revenue felt that the job worker should have followed the procedure under N/N. 214 of 86-CE and availed exemption - Held that: - the appellants paid central excise duty, both at the stage of procuring rough forgings .....

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not required to be compulsorily availed by job-workers - appeal allowed - decided in favor of appellant. - Excise Appeal No. E/56064-56065/2013-[DB] - Final Order No. 53153-53154/2017 - Dated:- 2-5-2017 - Hon'ble Mr. S.K. Mohanty, Member (Judicial) And Hon ble Mr. B. Ravichandran, Member (Technical) Mr. Nand Kishor & Anshul Verma (Advocates) for the Appellant Mr. H.C. Saini, DR for the Respondent ORDER Per B. Ravichadran These two appeals are against order dated 30.11.2012 of CCE Indore. .....

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ings which are inputs for their final products. They availed credit on the same. They have sent these rough forgings to the job workers for machining and further process to get intermediate product to be used by them in the manufacture of final product. The clearance of rough forgings to the job worker and receipt back is in terms of Rule 4(5)(a) of Cenvat Credit Rules, 2004. The job worker pays central excise duty on the finished intermediate products, namely machined forgings by adopting the v .....

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ch manufacture and clearance of intermediate goods. Proceedings were initiated against the main appellant as well as the second appellant, who is a job worker in this case, to demand and recover cenvat credit of ₹ 56,66,702 and also to impose penalties under various provisions of the Act under the Rules. Upon adjudication of the case original authority disallowed the said credit and imposed equal amount of penalty on the main appellant and a penalty of ₹ 5,50,000/- on the second appe .....

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ertaken by them. There is no mandate for the job worker to follow the procedure under Notification 214 of 1986. The job worker paid the full duty on the intermediate goods and cleared the same under proper receipt to the main appellant, thereafter they have availed credit of such duty. Admittedly duty has been discharged by the main appellant at the time of procurement of machined forgings. The credits on such payments cannot be denied to the appellants. He further relied on the decision of the .....

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the proceedings before the lower authorities regarding non-fulfillment of certain conditions under Rule 4(5)(a) of the Cenvat Credit Rules, 2004 by the appellant. 4. We have heard both the sides and perused the appeal records. 5. The proceedings against the appellants are for denying the credit of duty paid on finished forgings received by them from the job worker on payment of duty. We note that the main ground of denial is there is a double benefit to the appellant. One is at the rough forgin .....

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notification 214 of 86-CE is a conditional Notification. The same cannot be compelled to be followed by the job worker. 6. We note that the Tribunal had occasion to examine similar set of facts on earlier occasions in Bharat Heavy Electrical Ltd. (supra). The Tribunal held as below. The Department seeks to deny the Cenvat credit of the duty on the intermediate product paid by the job workers on the ground that on the same inputs, Cenvat credit cannot be availed twice - first at the time of recei .....

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