2011 (3) TMI 261 - AT - Central Excise

CENVAT Credit - A debit note was issued for accounting purposes but no charges were received from the job worker for the coating powder - Metal parts which were sent for job work (powder coating) have been sent back by the job worker within 180 days stipulated under Rule 4 (5) (a) of the CENVAT Credit Rules, 2004 - Hence,the appeal is allowed in favour of assessee.

Summary

The case involved a dispute over CENVAT credit for coating powder sent to a job worker. The department claimed the credit should be reversed, but the appellants argued that no payment was received from the job worker. The job worker confirmed in a letter that no payment was made. As the metal parts were returned within the stipulated time, there was no violation of CENVAT Credit Rules. The tribunal found no evidence of payment received and set aside the department's demand, allowing the appeal.