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TMI Blog2009 (9) TMI 838X X X X Extracts X X X X X X X X Extracts X X X X ..... job worker used in the job worked goods of principal manufacturer. However, it is required on the part of the learned Commissioner (Appeals) to conduct an enquiry and examine the record of the principal manufacturer M/s. DSM Anti-Infectives India Pvt. Ltd. and find out whether the job worked goods were properly accounted for at both the ends and whether such job worked goods had undergone the process of manufacture of final product and whether the final output has undergone suffering of excise duty and whether the principal manufacturer has claimed Cenvat credit on the inputs of job worker since job worker was exempt from payment of duty. Appeal allowed by way of remand. X X X X Extracts X X X X X X X X Extracts X X X X ..... at credit does not prohibit Cenvat credit on input used for manufacture of bulk drugs and drug intermediates ultimately used for manufacture of dutiable goods :- (1) Sterlite Industries (I) Ltd v. CCE, Pune, 2005 (183) E.L.T. 353 (Tri. - LB) (2) Kinetic Engg. Ltd. v. CCE, Pune III - 2007 (208) E.L.T. 526 (3) Shree Uma Foundries Pvt. Ltd. v. CCE, Kolkata-II - 2008 (222) E.L.T. 317 (Tri. - Kol.) = 2009 (15) S.T.R. 758 (Tribunal). 4. But learned DR supporting order of the learned Commissioner (Appeals) submits that when the exempted goods were cleared by the appellants, Revenue has not fetched duty. Therefore, the learned Commissioner (Appeals) has rightly decided the issue against the appellant for realization of 8% amount of sales p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s required on the part of the learned Commissioner (Appeals) to conduct an enquiry and examine the record of the principal manufacturer M/s. DSM Anti-Infectives India Pvt. Ltd. and find out whether the job worked goods were properly accounted for at both the ends and whether such job worked goods had undergone the process of manufacture of final product and whether the final output has undergone suffering of excise duty and whether the principal manufacturer has claimed Cenvat credit on the inputs of job worker since job worker was exempt from payment of duty. 6.3 Depending on the outcome of enquiry, as stated above, learned Commissioner (Appeals) shall pass an appropriate order. While passing the order, he should not ignore grounds o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ic Acid and Hydrochloric Acid. The chemicals manufactured on job work are cleared to the principal manufacturers at nil rate of duty under Notification No. 214/86-C.E. and the principal manufacturers use them for manufacture of finished products - bulk dugs and drug intermediates, which are cleared for home consumption on payment of duty or are exported or cleared to 100% EOUs/EPZ against CT-3 form. The Appellant do not maintain separate account and inventory of the inputs used for manufacture of their own goods, which are cleared on payment of duty and the inputs used for manufacture of goods on job work basis which are cleared to principal manufacturers at nil rate of duty under Notification No. 214/86-C.E. There is no dispute that the Ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in case of Jindal Polymers v. CCE reported in 2001 (135) E.L.T. 657 wherein it was held that a job worker need not reverse the credit of duty on his own inputs used on job work when the final product is cleared by the parent manufacturer on payment of duty. This view has been upheld by a Larger Bench of the Tribunal in case of Sterlite Industries(I) Ltd. v. CCE, Pune, reported in 2005 (183) E.L.T. 353. In this case, it was also pleaded that the finished products manufactured by the principal manufacturers out of job-work goods were being cleared on payment of duty and therefore, the Tribunal's judgments in case of Jindal Polymers v. CCE (supra) and Sterlite Industries (I) Ltd. v. CCE, Pune (supra) are applicable to this case. But the lower ..... X X X X Extracts X X X X X X X X Extracts X X X X
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