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2017 (9) TMI 1312 - AT - Central ExciseCENVAT credit - job-worked material - Rule 3(1) of the Central Excise Rules - Held that - the adjudicating authority has discussed the statement of the appellant, case laws. But, it has not discussed the facts of the case as based on the records of the transaction under the provisions of erstwhile Central Excise Rules and present Central Excise Rules, as contended by the appellant - it is required to examine the facts of the case on the basis of the records and thereafter the applicability of law and case law could be decided - appeal allowed by way of remand.
Issues: Cenvat credit on job-work materials for another unit.
Analysis: The case involved the appellant, a manufacturing company engaged in electro-galvanization process for their finished goods and products of another unit on a job-work basis. The Revenue contended that the appellant was not entitled to avail Cenvat Credit used in the job worked material for their other unit. The Adjudicating Authority confirmed a demand of &8377; 21,25,624/- along with interest and imposed penalties. The appellant argued that the goods were sent by the other unit in compliance with relevant rules, and thus duty payment on job-work materials should not apply, especially when those materials were used for manufacturing final products for export. The appellant cited various decisions to support their case. The Tribunal found that the Adjudicating Authority had not adequately examined the facts of the case based on the transaction records under the Central Excise Rules. The Tribunal noted that a de-novo adjudication was necessary to properly consider the facts and the applicability of the law and case laws. Therefore, the matter was remanded to the Adjudicating Authority for a fresh decision based on a thorough examination of the case records. The Adjudicating Authority was instructed to provide a reasonable opportunity for the appellant to present their case and to expedite the decision due to the case's age. In conclusion, the appeal was allowed by way of remand, and the Tribunal emphasized the need for a detailed examination of the case records to determine the applicability of the law regarding Cenvat credit on job-work materials for another unit.
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