TMI Blog2003 (3) TMI 183X X X X Extracts X X X X X X X X Extracts X X X X ..... is delivered directly to their job workers situated in Surat with a view to avoid unnecessary transportation of the yarn from purchaser to their factory at Mordi and again back to the premises of job workers at Surat; that the job workers converted Nylon Filament yarn into knitted Fabric which on receipt by the Appellants is laminated and is moved on payment of duty; that the Cenvat credit taken by them on the Nylon Filament yarn has been disallowed to them on the ground that the job workers were not operating under Notification No. 214/86-C.E., which is the condition contemplated under Rule 57AB(1) of the Central Excise Rules, 1944 and that the job workers could not avail the benefit contained in Notification No. 214/86 inasmuch as knitte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roduct for being used in the manufacture of the final product; that since this condition is satisfied, Cenvat credit cannot be disallowed to them; that it has been clarified by the Board in 1986 that the inputs can be directly sent to the job workers' premises without first coming into the factory of the manufacturer; that applying the said Circular, the Larger Bench of the Tribunal in Maruti Udyog Ltd. v. CCE, New Delhi, 2000 (118) E.L.T. 43 (T-LB) has held that the inputs under Rule 57F(2) can be directly sent to the job worker without first bringing into the factory of the manufacturer of the final product. Reliance has also been placed on the decision in Bright Steel Mac Fabrics v. CCE, Ahmedabad, 1994 (69) E.L.T. 276 (T) which has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the inputs. It is also not disputed by the Revenue that the intermediary goods received from the job workers are used in the manufacture of final goods which are cleared on payment of duty. The only objection taken by the Revenue is that the Job workers are not availing the benefit of exemption contained in Notification No. 214/86-C.E. as the fabric stands exempted from payment of duty under Notification No. 6/2000-C.E. Notification No. 214/86-C.E. also exempts excisable goods if manufactured in a factory as job work and is used in the manufacture of final products. It is thus apparent that the condition of availing the benefit contained in Notification No. 214/86-C.E. is indirectly availed of inasmuch as no duty is payable on the fabric m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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