2008 (2) TMI 707 - AT - Central Excise

Summary

Issues:
1. Credit availed for moulds and dies received from job worker.
2. Extension of time for return of moulds and dies.
3. Rejection of request to avail credit for duty paid.
4. Contention of duty payment due to non-receipt of moulds and dies within extended period.

Analysis:
1. The appeal was filed against the order allowing credit for moulds and dies received from a job worker. The respondent availed credit for duty payment on the moulds and dies sent to the job worker. However, as the moulds and dies were not returned to the factory within the stipulated period under Rule 9 of Cenvat Credit Rule, an extension was granted by the Commissioner of Central Excise. The revenue demanded duty when the items were not returned within the extended period, leading to confirmation of duty by the Adjudicating Authority and Commissioner (Appeals).

2. The Tribunal upheld the demand for duty but mentioned that the respondents could seek relief by making a proper prayer before the Competent Authority. Subsequently, the appellant requested to avail credit for the duty paid based on previous orders, which was rejected by the Adjudicating Authority but allowed by the Commissioner (Appeals).

3. The core issue revolved around the non-receipt of moulds and dies within the extended period and the subsequent demand for duty by the revenue. The appellant contended that they paid duty following the earlier order, and upon receiving the items back in the factory, requested to avail credit for the duty paid within six months from the payment date.

4. The Tribunal found that the respondent had paid duty initially due to the non-receipt of moulds and dies within the extended period. Subsequently, when the items were returned to the factory, the respondents availed credit within six months from the duty payment date. Consequently, the Tribunal found no fault in the impugned order and dismissed the appeal, emphasizing the timely availing of credit within the prescribed period.

This detailed analysis of the judgment highlights the key issues, arguments presented, and the Tribunal's decision in a comprehensive manner, maintaining the legal terminology and significant details from the original text.