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TMI Blog2002 (2) TMI 1128X X X X Extracts X X X X X X X X Extracts X X X X ..... Order]. - For the purpose of hearing the appeal, the appellants are required to pre-deposit a sum of Rs. 1,74,178/- (Rs. 1,41,065/- + Rs. 33,133/-) which has been demanded under Rule 57-I of Central Excise Rules, 1944 read with Section 11A of the Central Excise Act, 1944. They are also required to pre- deposit Rs. 15,000/- imposed as penalty under Rule 173Q and 226 of the Central Excise Rules. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder the cover of challans under Rule 57F(4) of the Central Excise Rules, 1944 after debiting the duty amount equivalent to 10% of the value of the desired partially processed intermediate product/inputs. He further submits that the job worker, instead of consigning the inputs under the cover of duplicate challans without payment of duty, has actually paid the duty and they have taken the credit o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ice as alleged in the show cause notice and as held by both the authorities below. They have taken the Modvat on the inputs finally and the credit of the debit of 10% initially done to cover the despatch of the partially covered processed inputs to me job workers. The duty paid by the job workers, though they were not required to pay can be taken as input credit under Rule 57A read with Rule 57G a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of CCE v. Konark Wires (P) Ltd. reported in 1995 (77) E.L.T. 315 (T) wherein it was held that duty payable by the job workers as well as the CVD and this can be taken as credit by supplier of materials subject to the verification that the job workers have not taken the credit. He, therefore, submitted that they have taken Modvat credit on the inputs which has been paid as duty by the job workers o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vailable to them in view of the decision rendered by the Tribunal in the case of Fact Asia Ltd. (supra) and CEE, Vadodara v. Dinesh Pharmaceuticals (supra) and CCE v. Konark Wires (P) Ltd. (supra). The department has also clarified that the job worker has not taken Modvat credit on the goods which were received by them for processing further. In view of the facts and circumstances, I am of the con ..... X X X X Extracts X X X X X X X X Extracts X X X X
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