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TMI Blog2018 (8) TMI 351X X X X Extracts X X X X X X X X Extracts X X X X ..... rocured by the job workers in their own account and used in the manufacture of job worked goods sought to be denied on the premise that the inputs in question were not physically received by the principal manufacturer i.e. DSM Sinochem Pharmaceuticals India Pvt Ltd; therefore, the Cenvat credit was denied to the principal manufacturer and penalties were imposed on all the appellants. 2. Brief facts of the case are that the principal manufacturer i.e. DSM Sinochem Pharmaceuticals India Pvt Ltd, is the manufacturer of penicillin and procuring inputs in their own account in their factory. Certain inputs directly gone to the job workers and some inputs were procured by the job workers in their own account and goods were processed by the job wo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on all the appellants were imposed. Against that order, the appellants are before us. 3. Ld. Advocate appearing on behalf of the appellants submits that in this case it is not the allegation against the job workers as well as the principal manufacturer that the inputs in question were not used in the process of manufacturing the job worked goods by the job workers. Therefore, in terms of Rule 3 of Cenvat Credit Rules, 2004 whatever inputs used for manufacturing of final product, the principal manufacturer is entitled to avail the Cenvat credit. To support this contention, he relied on the decision of this Tribunal in the case of CCE, Delhi-III vs. Interface Microsystems - 2016-TIOL-245-Tribunal- Chandigarh and on the judgment of Hon'ble A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ufacturing of final product is entitled Cenvat credit to the principal manufacturer. Same view was taken by this Tribunal in the case of CCE vs. Interface Microsystems (supra), wherein this Tribunal has held as under: "6. The issue before me is whether the respondent is entitled to avail credit on the services used by the job worker who is exclusively manufacturing 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5.3.1986. As the rule specifically provided that if the job worker avails the exemption under Notification 214/86-CE dated 25.3.1986 in that circumstance, the principal manufacturer is entitled to avail the credit of the services availed by the job worker. The said issue has already been 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 "input services", nowhere specifies that the services have to be received and utilized ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rein the Hon'ble Apex Court has observed as under: "6. We are of the view that the submission of the appellant is correct. The Tribunal appears to have been confused between the manufacture of the final product, namely, excavators and the manufacture of the intermediate product, namely, the floor plate assemblies. The scheme of Modvat permits the person who clears the ultimate final product to take the benefit of the Modvat scheme at the time of clearance of such final product. The manufacturer of the final product, in this case TELCO, would therefore, be entitled not only to adjust the credit on the inputs supplied by it to the intermediate purchaser such as the appellant but also to the credit for the duty paid by the intermediate purch ..... X X X X Extracts X X X X X X X X Extracts X X X X
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