9911796707
TMI Blog2009 (10) TMI 571X X X X Extracts X X X X X X X X Extracts X X X X ..... antial question of law – Appeal dismissed X X X X Extracts X X X X X X X X Extracts X X X X ..... ued Invoice under Rule 11 of Central Excise Rules, 2002, for quantity of furnace oil transferred to the separate tank of Respondent No. 1 and thereafter, Respondent No. 1 in turn availed CENVAT credit on its strength. 3. Appellants found it in contravention of Rule 2, 3, 4 and 7 of erstwhile CENVAT Credit Rules, 2002 and of 2004 for the period from1-4-2003--3-12-2004. After hearing, credit of duty amounting to Rs. 1,17,02,115/- was found to be ineligible and a penalty of Rs. 15,00,000/- was also imposed vide order dated 30-7-2004. In other matter, for the period from1-1-2004--30-9-2004credit of Rs. 1,13,17,607/- was found to be wrongly availed and penalty amount of Rs. 15,00,000/- was also imposed vide order dated8-8-2005. The amounts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (b) Whether Tribunal is right in holding that furnace oil is an input because of provisions of Rule 4(5) of CENVAT Credit Rules, 2002 and Circular 637/28/2002-CX., dated 8-5-2002 especially when it was not used in manufacture of intermediate products by the job worker or goods sent to job worker were not partially processed and were not sent for further processing, testing, repair, reconditioning or for any other purpose. 5. Adv. Nankani for Respondent No. 1 supports the impugned order and contends that furnace oil need not be used within factory of production. According to him, purchase of part of business of M/s. IRSL and of furnace oil as fuel by Respondent No. 1, separate storage tanks for said fuel with M/s. IRSL and receipt by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... within its factory. Those observations are :- "4. We observe that Rule 57-B commences with a non-obstante clause. It allows credit to be taken by a manufacturer on inputs used in or in relation to the manufacture of the final products whether directly or indirectly and whether contained in the final products or not. There is no qualification as to where the inputs must be used in the main body of sub-rule (1). Qualifications have been introduced to the extent stated in Clauses (i) to (vi) read with the Explanation. Thus clause (i) provides for inputs which are manufactured and used within the factory of production. Paints, fuel, packing materials and accessories are also treated as inputs under clauses (ii), (iii), (v) and (iv) witho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -Central Excise, dated 25/3/1986 has been availed of. This notification finds mention in paragraph 17 of judgment ofHon'ble Apex Court. In facts beforeHon'ble Apex Court, inputs were being used by manufacture of final product but not within the factory of production.Hon'ble Apex Courtupheld its earlier view in case of Jaypee Rewa Cement v. CCE [2001 (133) E.L.T. 3 (S.C.)] to conclude that Rule 57A(1) did not require inputs to be utilised in factory premises. Consideration in paragraph 16 of judgment shows that credit is permissible in respect of intermediate goods received from a job worker on or after1-4-2000. Credit can be allowed only if the intermediate products received by the manufacturer of the said final products are accompanied by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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