2011 (1) TMI 280 - HC - Central Excise

Cenvat Credit - inputs used in the goods manufactured on job work basis and cleared without payment of duty under Notification No. 214/86-CE dated 25.03.1986 - the Tribunal held that where duty is paid on final product, cenvat credit cannot be disallowed on the inputs used in manufacture of inputs is consistent with the view taken by this Court (Commissioner of Central Excise v. M/s Happy Forging Ltd.) after referring to the judgments of the Hon ble Supreme Court in Escorts v. CCE, (2004) 7 SCC 214 and CCE v. Hindustan Sanitaryware & Industries, (2002) 7 SCC 515 - Accordingly, the appeal is dismissed.

Summary

The High Court dismissed the revenue's appeal under Section 35G of the Central Excise Act, 1944, against an order passed by the Customs, Excise & Service Tax Appellate Tribunal. The Court upheld that Cenvat Credit is available for inputs used in goods manufactured on job work basis and cleared without duty payment. The decision was consistent with previous judgments, leading to the dismissal of the appeal.