2011 (4) TMI 833

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..... and clear the processed goods to the principal manufacturer on payment of duty and the principal manufacturer takes the credit of the same in his factory and utilises such credit for payment of duty on his final products at the time of clearance - See CCE Vadodara Vs. J.H. Kharawala (P) Ltd. [2008 (7) TMI 287 - CESTAT, AHMEDABAD] & Welspun India Ltd. Vs. CCE Daman [2009 (2) TMI 690 - CESTAT, AHMED .....

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..... d goods. The Order-in-Original confirmed the demand and imposed penalty which was upheld by the Commissioner (Appeals). The main contention of the appellant is that the goods manufactured by them on job work basis are neither exempted from the duty of excise nor chargeable to nil rate of duty. Since the goods were not exempted the job work activity only shifts the duty liability from the job work .....

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..... the Modvat credit to the present job worker on the grounds that the inputs were used in the manufacture of the goods which were cleared without payment of duty. Pausing here for a second, let us take a situation where the basic inputs is sent by the principal manufacturer after debiting the Modvat credit taken by him. The job worker takes the credit of the same his factory, utilises other inputs p .....

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