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2015 (7) TMI 1010 - AT - Service TaxCenvat Credit - Reversal in case of Job work availing Exemption under Notification No. 8/2005 dated 01.03.2005 - Rule 6 of Cenvat credit Rules 2004 - held that - In various decision, it was observed that, Cenvat credit of input services was admissible to the job worker clearing goods to principal manufacturer under Notification Number 214/86-C.E. In view of the above, we hold that the provisions of Rule 6(1) of the Cenvat Credit Rules, 2004 cannot be invoked for denying Cenvat credit of input services used by the appellant factory for manufacture of job-worked goods under Notification No. 214/86-C.E. Issue stands settled in view of ordered passed by this bench in the case of JBF - Industries vs. C.C.E. & S.T., VAPI (2014 (2) TMI 769 - CESTAT AHMEDABAD), after relying upon larger bench judgment in the case of sterlite Industries Ltd. vs. cmmr. 2004 (12) TMI 108 - CESTAT, MUMBAI Paras 6.1 and 6.3 of ordered dated 11.02.2014 passed by this bench in the case of JBF vs. C.C.E. & S.T, VAPI are relevant - Decided in favour of assessee.
Issues involved:
1. Whether the appellant is required to pay an amount at the rate of 8% or 6% under Rule 6 of Cenvat Credit Rules 2004 when goods/services rendered by a job worker are exempted under Notification No. 8/2005 dated 01.03.2005. Analysis: The appellant filed an appeal against the order passed by the first appellate authority upholding the decision of the adjudicating authority. The main issue in question was whether the appellant is obligated to pay 8% or 6% concerning exempted activities undertaken by a job worker. The appellant's advocate argued that this issue was settled based on previous case laws. The respondent, representing the Revenue, defended the first appellate authority's order. The Tribunal, after hearing both parties and examining the case records, focused on the interpretation of Rule 6 of the Cenvat Credit Rules 2004. The Tribunal referred to a previous judgment in the case of JBF Industries vs. C.C.E. & S.T., VAPI, which had already settled a similar issue. The Tribunal highlighted the relevance of the larger bench judgment in the case of Sterlite Industries Ltd. vs. Cmmr., which supported the appellant's position. The Tribunal emphasized that the appellant, as a job worker, should be considered a manufacturer, not a service provider, in the context of exempted activities. Therefore, the Revenue's argument that the appellant provided exempted/non-taxable services was deemed invalid. The Tribunal concluded that the appellant's appeal was allowed based on the settled proposition, providing consequential relief if applicable. The decision was based on the interpretation of Rule 6 of the Cenvat Credit Rules 2004 and the distinction between a job worker as a manufacturer, not a service provider, for exempted activities.
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