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TMI Blog2011 (7) TMI 676X X X X Extracts X X X X X X X X Extracts X X X X ..... ork basis as the proportionate credit in respect of the quantity of aluminium wire used for manufacture of metallised film manufactured on job work cleared under Notification No. 214/86-C.E. was reversed - Held that: there is no justification for invoking the provisions of Rule 6(2) read with Rule 6(3)(b) of Cenvat Credit Rules and demand an amount equal to 8%/10% of the value of the goods cleared under Notification No. 214/86-C.E - Decided in favor of the assessee - stay granted. X X X X Extracts X X X X X X X X Extracts X X X X ..... on Rules, 2000, the duty was paid on the basis of price at which the same goods had been sold to independent buyers, which according to the department, is not correct. 1.3 It is on the above basis that the four show cause notices, the details of which are given below, were issued to the appellant for demand of differential duty/amount under Rule 6(3)(b) of Cenvat Credit Rules along with interest and also for imposition of penalty. S. No. SCN No. & Date Unit of the Noticee Period Amount/Duty involved (in Rs.) in r/o job-work in r/o stock transfer Total 1. 02/Commr./LKO/08-09 dt. 17-6-08 Unit No. II 2003-04 to 2007-08 2,86,41,271.00 1,10,30,517.00 3,96,71,788.00 2. 12/Commr./LKO/08-09 dt. 11-11-08 Unit No. III 2003-04 to 2007-08 4,30,44,884.00 3,95,79,868.00 8,26,24,752.00 3. 04/Commr./LKO/09-10 dt. 1-5-09 Unit No. II 2008-09 (upto Jan. '09) 1,39,80,219.00 19,12,091.00 1,58,92,310.00 4. 05/Commr./LKO/09-10 dt. 1-5-09 Unit No. III 2008-09 (upto Jan. '09) 4,37,86,627.00 86,91,111.00 5,24,77,738.00 1.4 These show cause notices were adjudicated by a common order-in-original No. 57-60/Commr./LKO/2009, dated 30th September, 2009 by which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the inputs meant for manufacture of dutiable final product and exempted final products, that in any case, in respect of the goods manufactured on job work basis and cleared under job work challans without payment of duty under Notification No. 214/86-C.E., the Cenvat credit in respect of inputs used by the job worker which had been taken by him, is not required to be reversed and in this regard he relies upon the judgment of the Hon'ble Supreme Court in the case of Escorts Ltd. v. Collector reported in 2004 (171) E.L.T. 145 (S.C.), judgment of Larger Bench of the Tribunal in the cases of Sterlite Industries (I) Ltd. v. CCE, Pune reported in 2005 (183) E.L.T. 353 (Tri. - LB), and other judgments of the Tribunal in cases of Welspun India Ltd. v. CCE, Daman reported in 2009 (248) E.L.T. 898 (Tri. - Ahmd.), Jindal Polymers v. CCE, Meerut-III reported in 2001 (135) E.L.T. 657 (Tri. - Del.) and Sudhir Forging v. CCE, Ludhiana reported in 2010 (251) E.L.T. 478 (Tri. - Del.), that in view of this, the Commissioner's order confirming the demands of duty and of the amount under Rule 6(3)(b) of Cenvat Credit Rules, 2004 along with interest and also imposing penalty on the appellant is not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of clearances to other units on stock transfer basis for their captive consumption is concerned, we are of the prima facie view that the impugned order is not sustainable. 5. As regards the demand under Rule 6(3)(b) of Cenvat Credit Rules, 2002/2004 in respect of metallised films cleared without payment of duty under Notification 214/86-C.E., in this case, there is no dispute that metallised film had been manufactured out of the polyester/plastic film supplied by the customers and the appellant had used their own aluminium wire. The department does not dispute that the appellant have not taken Cenvat credit in respect of the aluminium wire used for manufacture of metallised film on job work basis as the proportionate credit in respect of the quantity of aluminium wire used for manufacture of metallised film manufactured on job work cleared under Notification No. 214/86-C.E. was reversed. We also find that there is series of judgments that in such a situation, the job worker is not even required to reverse the credit availed in respect of his own inputs when the goods have been manufactured on job work basis for another person and cleared under Notification No. 214/86-C.E. Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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