9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (11) TMI 610 - AT - Central ExciseEligibility for cenvat credit in respect of the input service received and used at the job-workers premises for the purpose of manufacture of goods of the appellant on job work basis - job work done under Rule 4(5)(a) of Cenvat Credit Rules, 2004 - HELD THAT - The identical issue in the assessee s own case has been decided by this Tribunal in SHRI RAMNIWAS SAINI, INTERNATIONAL PACKAGING PRODUCTS PVT. LIMITED VERSUS COMMISSIONER OF CENTRAL EXCISE ST, DAMAN 2019 (10) TMI 1597 - CESTAT AHMEDABAD , wherein this Tribunal has held that ' the very same issue has been considered by this Tribunal in the case of KKALPANA INDUSTRIES (INDIA) LTD., SHRI VISHAL RANKA, SHRI AJIJUL RAHAMAT KHAN VERSUS C.C.E. S.T., SILVASA 2019 (7) TMI 2044 - CESTAT AHMEDABAD wherein, by interpreting Rule 3 of Cenvat Credit Rules, it was held that input service used for job work, the Cenvat credit thereof is admissible to the principal.' From the above decision in the assessee s own case, the issue is no longer res-integra. Accordingly, the impugned order in the assessee s appeal is not sustainable and impugned order in Revenue s appeal is liable to be upheld - appeal of assessee allowed.
Issues:
Whether the assessee is eligible for cenvat credit for input services used at job-workers premises for manufacturing goods on job work basis under Rule 4(5)(a) of Cenvat Credit Rules, 2004. Analysis: The judgment in this case revolves around the eligibility of the assessee for cenvat credit in relation to input services utilized at the job-workers premises for manufacturing goods on a job work basis under Rule 4(5)(a) of the Cenvat Credit Rules, 2004. The appellant's counsel relied on various judgments, including L&T Ltd., MRF Ltd., Zenith Machine Tools Pvt Ltd., Asia Tubes Ltd., CCE&ST vs Ashok Leyland, Kkalpana Industries, and International Packaging Products Pvt. Ltd. The authorized representative for the respondent cited judgments like Zenith Machine Tools Pvt. Ltd. and CCE Trichy vs Godrej Sara Lee Ltd. The Tribunal examined the submissions and records, noting that a similar issue had been decided in the assessee's own case in a previous order dated 10.10.2019. In that order, it was held that input services used for job work are eligible for cenvat credit to the principal, emphasizing that since the job work was exclusively for the manufacture of the appellant's goods, the credit is admissible. The Tribunal referred to Rule 3 of the Cenvat Credit Rules, highlighting that even if the job worker does not pay excise duty but conducts job work on behalf of the principal under Notification no. 214/86-C.E., the principal is entitled to cenvat credit on services and inputs used in the job work goods' manufacture. Consequently, the impugned order was set aside, and the appeals were allowed. In conclusion, the Tribunal found that the issue was no longer res-integra based on the previous decision in the assessee's case. Therefore, the impugned order in the assessee's appeal was deemed unsustainable, while the order in Revenue's appeal was upheld. As a result, the assessee's appeal was allowed, and the revenue's appeal was dismissed. The judgment was pronounced in open court on 06.11.2024.
|
