TMI Blog2018 (8) TMI 351X X X X Extracts X X X X X X X X Extracts X X X X ..... as not been disputed that the same is fake - after examining the said document, although there may be a procedural lapse on the part of the principal manufacturer, but it cannot be denied the inputs in question were not used in process of job worked goods by the job workers. In these circumstances, whatever inputs used in manufacturing of final product is entitled Cenvat credit to the principal manufacturer. The adjudicating authority has fell in error by holding that the job workers are clearing finished goods to the principal manufacturer, in fact as per the Annexure-I and the challan, the job workers are clearing the job work goods namely 6-APA Crude and the principal manufacturer is clearing the said goods in Refined form - Therefor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... job workers in their own account and goods were processed by the job workers (co-appellants) on behalf of the principal manufacturer. The principal manufacturer intimated to the Department in terms of Rule 16A of the Central Excise Rules, 2002, the process to be followed by the principal manufacturer for recording the transactions of job worked goods and their manufacturing activity. An intelligence was gathered that the principal manufacturer is not receiving physically the inputs procured by the job workers in their account in their factory; therefore, the investigation was conducted and on the basis of investigation, it was alleged that as the inputs procured by the job workers in their own account but were never physically received by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tems - 2016-TIOL-245-Tribunal- Chandigarh and on the judgment of Hon ble Apex Court in the case of International Auto Ltd vs. CCE, Bihar - 2005 (183) ELT 239 (SC). 4. On the other hand, Ld. A.R. opposes the contention of the Ld. Advocate and submits that in this case the adjudicating authority has given a clear cut finding that the job workers are clearing the finished goods to the principal manufacturer and the inputs in question were not received physically in the factory of the principal manufacturer. Moreover, the challans were issued on later date whereas the invoices were issued earlier; therefore, it is clear from the records that the inputs in question were cleared later on which cannot be used for manufacturing of job worked ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Act, 2005 (18 of 2005),] paid on - (i) any input or capital goods received in the factory of manufacture of final product or [by] the provider of output service on or after the 10th day of September, 2004; and (ii) any input service received by the manufacturer of final product or by the provider of output services on or after the 10th day of September, 2004, including the said duties, or tax, or cess paid on any input or input service, as the case may be, used in the ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from both sides. The definition of input services , nowhere specifies that the services have to be received and utilized within the factory. This position has been clearly held by the Tribunal in the case of Maharashtra Seamless Ltd. (supra). Rule 3 of the CENVAT Credit Rules specifically provides that credit of tax paid on any input service, used in the manufacture of intermediate products, by a job worker availing the benefit of exemption specified in Notification No. 214/86-C.E. be allowed. I find that the orders relied upon by the departmental representative has not examined the express provision under Rule 3 of Cenvat Credit Rules or the recent clarification dated 19-1-2010 (supra) issued by C.B.E. C. in the matter. Therefore, I ado ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... supplied by it to the intermediate purchaser such as the appellant but also to the credit for the duty paid by the intermediate purchaser on its products. The reliance on the decision in Burn Standard Company Ltd. (supra) by the Tribunal was misplaced. That case has no doubt held that the value of the free inputs were to be included in the final product. In that case, the final product was wagons and the question was whether the items which were supplied free by the Railway Board to the assessee could be included in the value of the wagons. This Court came to the conclusion that it could. The first distinguishable feature is that this Court in that case was neither concerned with the Modvat scheme, nor with the provisions of Rule 57F(2)(b) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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