9911796707
TMI Blog2013 (9) TMI 344X X X X Extracts X X X X X X X X Extracts X X X X ..... or the period April, 2008 to March, 2009, it was observed that the appellant had shown opening balance of Rs. 2,05,587/- in the month of April, 2008 and availed CENVAT credit of Rs. 1,82,998/- during the period April, 2008 to September, 2008 and Rs. 1,27,762/- during the period from October, 2008 to March, 2009, on inputs used for manufacturing goods on job work from April, 2008 to September, 2008. 2. Revenue held that in terms of Rule 11(2) of CENVAT Credit Rules, 2004, a manufacturer who opts for exemption based on value or quantity, the balance of CENVAT credit account would lapse and shall not be allowed to utilize for payment of duty on any excisable goods. Similarly, as per provision of the Notification No. 8/2003-C.E., dated 1-3-200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see and the Revenue are filed an appeal. Revenue has filed the appeal on the ground that the interest on CENVAT Credit not utilized is payable. Ld. Commissioner allowed the appeal filed by the Revenue and rejected the appeal of the assessee. Assessee is in appeal against the decision demanding interest on the CENVAT Credit and penalty imposed. 5. Heard both sides. 6. It was submitted that an assessee is availing benefit of SSI exemption can utilized the CENVAT Credit in respect of final product for which he is eligible for CENVAT Credit. It was submitted that the credit taken was only in respect of inputs used for manufacturing goods on job work basis and the goods manufactured on job work basis cannot be said to be exempted. Reliance was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of job work goods, the restriction for taking CENVAT Credit in the CENVAT Credit Rules or in the notification would not be applicable to them. This view is supported by the decision in the case of Nebulae Health Care Ltd. v. CC, Chennai - 2007 (209) E.L.T. 125 (Tri.-Chennai). The relevant Para 7 of the decision is reproduced below. "7. The provisions in the relevant Notifications to compute aggregate value of clearances mandate that the clearance of goods bearing brand name or trade name of another person which are ineligible for the grant of exemption shall not be taken into account in determining the aggregate value of clearances. Therefore, value of clearances of goods bearing brand name of third parties without availing the benefit o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the Larger Bench in the said case was whether a job worker entitled to take credit of duty in respect of duty paid inputs used by him in manufacture of goods on job work basis or not, and this issue had arisen because the Revenue had been contesting that the goods produced by the job worker were removed from his factory to the principal manufacturer without payment of Excise duties in view of exemption of goods produced on job work, and therefore MODVAT Credit of inputs so used in manufacture of goods on job work was not allowed under Rule 57C of the erstwhile Rules. However, the Larger Bench of the Tribunal has held that the job work transactions were outside the purview of Rule 57C and therefore a job worker was legally entitled to avai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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