TMI Blog1997 (3) TMI 644X X X X Extracts X X X X X X X X Extracts X X X X ..... r of Appeals. Collector (Appeals) set aside the impugned order and held that on point of mis-declaration, the Order of Assistant Collector was beyond his jurisdiction. He in the result, remanded the case to Collector for de novo adjudication in view of prima facie allegation of mis-declaration and suppression of facts. 3. Arguing for the appellants the Ld. Advocate submits that they are a job worker undertaking the job work of converting copper bar into copper wire rods on behalf of Principals. They either work under Rule 57F(ii) or they themselves take credit on the inputs and clear the goods to their Principals on payment of duty. In other words, while in some cases they opt for benefit of Notification 214/86, in other cases they strai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provided the Principal has not taken the modvat thereon. There is no allegation, the Ld. Consultant submitted, that the Principal has taken modvat since Principal had not taken modvat on the impugned goods, the Law permitted job worker to take credit, provided subsequently goods were removed by him to the Principal on payment of duty. It is well-settled position that the job worker himself is also a manufacturer. 4. Ld. DR reiterates departmental arguments and submits that charge of suppression is implied in the show cause notice since Rule 173(Q) has been invoked. 5. We have heard both sides. Basically the charge against the appellants was that whereas goods were eligible to exemption under Notification 214/86, they paid duty on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d, the facility under Sub-rule(1) will not be available or vice-versa. Both provisions are independent and can be availed simultaneously. The party is maintaining separate records in relation to the goods received under Sub-rule (1) and (2) of Rule 57F and there is no allegation that they have mixed up the goods received under the provisions of the two sub rules and there is violation liable to the recovery of Modvat credit. Therefore, the charges as levelled in the show cause notices are not sustainable. In fact, the Assistant Collector of Central Excise, MOD-IV in his Order-in-original No. 23/92 dated 30.3.1992 has dropped the charges for reversal for Modvat credit of ₹ 56,57,896.41 relating to the three show cause notices dated 16. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... modvat credit thereon. Ld. DR concedes that Principal had not taken modvat credit on the impugned goods, and therefore, the job worker was free to pay duty on the finished goods after claiming modvat on inputs. In any case, whether to follow Rule 57F(ii) procedure or not was the option of the Principal and if the Principal did not choose to follow such procedure and in such condition, job worker, carrying out job work for a principal, could not have been forced to discharge that obligation. Rule 57F(ii) essentially casts an obligation on the Principal and not on the job worker. 7. In view of this, we set aside the impugned order and allow the appeal. II) Appeal No. E/3202/93-NB. 8. In this appeal relief has not been given to the appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bill of entry cannot be considered as a prescribed document under Rule 57G(2). The Collector has confirmed the demand. 9. In this connection, our attention was drawn by Ld. Advocate to the case of Shri Krishna Strips Ltd. v. CCE 1995 (10) RLT 650 (CEGAT-NRB) where Tribunal held that additional duty of Customs paid on imported copper wire bars used in the copper strips and copper foils is available as credit on the endorsed bill of entry. Not following certain procedure would not result in denial of the credit. We are reproducing only the head note in this connection: Modvat Credit-Additional duty of Customs paid on imported copper wire bars used in the manufacture of copper strips and copper foils-available credit on the endorsed bil ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
