2018 (2) TMI 712 - AT - Central Excise

CENVAT credit - job-worker - denial of credit on the ground that respondent is a job-worker - Held that - the assessee-respondent has cleared the excisable goods after payment of duty. When it is so, then assessee-respondent is entitled to the CENVAT credit as per the provisions of CCR 2004 - appeal dismissed - decided against Revenue.

Summary

Issues: Appeal against denial of CENVAT credit to a job-worker for excisable goods produced from imported raw material.

Analysis:
1. The department filed an appeal against an Order-in-Appeal denying CENVAT credit to the job-worker, who received imported raw material from M/s. Bharat Heavy Electricals Limited (BHEL) and produced excisable goods cleared after payment of duty.

2. The job-worker claimed CENVAT credit, which the department denied initially. However, the Commissioner (Appeals) allowed the claim, leading to the department's present appeal.

3. The Appellate Tribunal noted that the job-worker received imported material from BHEL and produced excisable goods cleared after duty payment. The imported goods were endorsed via the bill of entry in favor of the job-worker, who paid duty wherever applicable.

4. Considering the job-worker's role as merely processing the imported material into excisable goods cleared after duty payment, the Tribunal found the job-worker entitled to CENVAT credit under the CENVAT Credit Rules, 2004.

5. The Tribunal upheld the Commissioner (Appeals) decision, stating that since the job-worker cleared the excisable goods after duty payment, they are rightfully entitled to the CENVAT credit, with no grounds for interference in the impugned order.

6. Consequently, the department's appeal was dismissed, affirming the job-worker's entitlement to the CENVAT credit for the excisable goods produced from the imported raw material.

This detailed analysis of the judgment highlights the key issues, arguments, and the Tribunal's decision regarding the denial of CENVAT credit to the job-worker, providing a comprehensive overview of the legal proceedings and outcome.