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TMI Blog2010 (8) TMI 279X X X X Extracts X X X X X X X X Extracts X X X X ..... e are that the respondent are repairing electrical motors manufactured by them within warranty period free of charge as well as those manufactured by other manufacturers on labour-job basis. Whenever inputs, (on which Cenvat Credit) is taken, are used for repair work, they reverse the Cenvat Credit. All the clearances were made under Annexure-II challans and duty is paid only on the electrical motors manufactured by them. It was alleged against the respondent that they are doing job work and the activity undertaken by them for repairs under job work challan, they are not liable to pay any duty, the credit taken on the inputs by them is liable to be reversed and the duty paid by them is to be treated as a deposit under Section 11D(1) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... work. On these parts the respondent has paid the duty and availed the credit. While these parts are cleared back to their duty customers as fitted in the transformer, the only duty portion was reversed which was availed for these inputs only hence the respondent had discharged their duty liability and they are not liable to reverse the Cenvat credit availed by them on the input used repair of the transfer. 6. On careful examination of the submissions made by both the sides, I have gone through the records in para 21 of the Order-in-Original the Jt. Commissioner has clarified the issue which is reproduced here as under :- "Pursuant to repairing of these transformers, when they are cleared back to the customers, there is no Central E ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 11D speaks of "duties of excise collected from the buyers to be deposited with the Central Government" and provisions of Section 11D(1) specify that every person who is liable to pay duty under this Act or the Rules made thereunder, and has collected any amount in excess of the duty assessed or determined and paid on any excisable goods under this Act or Rules made thereunder from the buyer of such goods in any manner as representing duty of excise, shall forthwith pay the amount so collected to the credit of the Central Government. This is not the case here. In this case the respondent has reversed the credit availed by them on the inputs used in repair of the transformers on which the respondent availed the Cenvat credit by paying t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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