TMI Blog2017 (12) TMI 1210X X X X Extracts X X X X X X X X Extracts X X X X ..... put and input services where the jobwork is undertaken in terms of N/N. 214/86 CE dt. 25.03.1986 i.e when the principal manufacturer is discharging duty on final products. The Appellants have correctly availed the cenvat credit used in job-work activity and the bar of Rule 6 of the CCR, 2004 would not apply - appeal allowed - decided in favor of assessee. - ST/115/12, ST/87218 & 87219/13, ST/87440/13, ST/87440/06 - A/91425-91427/2017 - Dated:- 7-12-2017 - Shri Ramesh Nair, Member (Judicial) And Shri Raju, Member (Technical) Shri L. Badrinarayanan, Advocate with Shri Vinay Jain, Adovcatefor Appellant Shri B. K. Iyer, Supdt. With Shri M.P. Damle, AC (AR) for Respondent ORDER Per : Ramesh Nair In all these appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... excise as well as unregistered units. The Service provider is paying service tax on the job charges received from un-registered and claiming exemption from payment of service tax on the job charges received from registered unit under notification No.8/2005-ST. The goods so processed on job work basis by the assessees are returned back to the clients i.e. Principal manufacturers who discharge duty on final products. The service under the notification supra is exempted service as per Rule 2 (e) of CCR, 2004. The service provider being provider of exempted service has to maintain separate account for receipt consumption of inputs and input services used for providing taxable and exempted output services but the service provider M/s IHT IH ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rules 2004 the job-worker is eligible to avail credit of tax paid on input and input services where the jobwork is undertaken in terms of Notification No. 214/86 CE dt. 25.03.1986 i.e when the principal manufacturer is discharging duty on final products. Further, we find that Notification No.8/2005 ST dt. 01.03.2005 is subject to the proviso which is as under : Provided that the said exemption shall apply only in cases where such goods are produced using raw materials or semi-finished goods supplied by the client and goods so produced are returned back to the said client for use in or in relation to manufacture of any other goods falling under the First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), as amended by the Cent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld by the Hon ble Mumbai High Court reported in 2009 (244) ELT A89 (BOM.) (ii) Western Indian Forging P. Ltd - 2014 (36) STR 637 (iii) MPI PAPER PVT. LTD. - 2016 (336) E.L.T. 86 (Tri - Mum) 7. We find that the Appellants have correctly availed the cenvat credit used in job-work activity and the bar of Rule 6 of the Cenvat Credit Rules, 2004 would not apply. Therefore the demands and penalties against the Appellants are not sustainable. 8. In view of our above observation and findings, we set aside the impugned orders and allow the appeals of the assessee with consequential reliefs to the Appellant, if any. The appeal filed by the Revenue is also dismissed in view of our above observation. (Pronounced in Court on 0 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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