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TMI BlogWhether Cenvat Credit is admissible to the principal manufacturer, when the goods cleared without payment of duty on job work basis?X X X X Extracts X X X X X X X X Extracts X X X X ..... Whether Cenvat Credit is admissible to the principal manufacturer, when the goods cleared without payment of duty on job work basis? - By: - Bimal jain - Cenvat Credit - Dated:- 11-8-2012 - - Whether Cenvat Credit is admissible to the principal manufacturer, when the goods cleared without payment of duty on job work basis? Dear Professional Colleague, We are sharing with you a recent judg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment of the Honourable CESTAT, Bangalore:- Citation : 2012 (8) TMI 317 - CESTAT, BANGALORE Appellant (s) : M/s Bansal Precision Forge Ltd. Respondent (s) : CCE Bangalore-II Division, Bangalore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Issue:- Whether CENVAT Credit is admissible to the principal manufacturer, when the goods manufactured on job work basis are cleared to principal manufacturer without payment of duty, who in turn processes the goods further and clear final products on payment of duty? Facts of the Case:- The appellant had availed CENVAT credit of Central Excise duty a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd Education Cess on inputs used for job work. The job-worked goods were cleared without payment of duty, to the principal manufacturer, who processed the goods further and cleared the final product on payment of duty. The Department was of the view that the Cenvat Credit of duty paid on inputs used for job work purposes was not available as the goods were being cleared without payment of duty. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Commissioner (Appeals) also upheld the order of the original authority on the grounds of Rule 6(1) of Cenvat Credit Rules, 2004 which provides that Cenvat credit shall not be allowed on such quantity of inputs used in or in relation to the manufacture of exempted goods or for provision of exempted services . Held:- Cenvat Credit cannot be denied on inputs used for job work for manuf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acturing goods which are cleared to the principal manufacturer without payment of duty, who in turn process the goods further and clears them on payment of duty. While hearing the case of both the parties, the Tribunal relied on the judgement in the case of Sterlite Industries (I) Ltd. vs. Commissioner: 2004 (12) TMI 108 (CESTAT, MUMBAI) and Sudhir Forging vs. Commissioner: 2009 (9) TMI 458 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (CESTAT, NEW DELHI) wherein it was held that Cenvat Credit cannot be denied for duty paid on the inputs used in the manufacture of final product. The Tribunal was of the view that Rule 6(1) of Cenvat Credit Rules, 2004 provides for non-availability of Cenvat Credit on inputs in case they are used in the manufacture of exempted goods. Here, although the job worker is clearing the goods with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out payment of duty but the duty is being paid at the principal manufacturer s end. Accordingly, this case will not be hit by the provisions of Rule 6 (1) of Cenvat Credit Rules, 2004 . Hence, the Tribunal rejected the contention of the Department and decided the case in favour of the assessee. The Appellant in his submission relied upon the following decisions:- a) Sterlite Indu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stries (I) Ltd. Vs. Commissioner 2004 (12) TMI 108 (CESTAT, MUMBAI) b) Sudhir Forging Vs. Commissioner 2009 (9) TMI 458 (CESTAT, NEW DELHI) Hope the information will assist you in your Professional endeavours. In case of any query/ information, please do not hesitate to write back to us. Thanks Best Regards. Bimal Jain FCA, ACS, LLB, B.Com (Hons) Mobile: +91 98106 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 04563 E-mail: [email protected] - Reply By Joginder Pal as = Thanks. Keep helping. Dated: 13-8-2012 - Scholarly articles for knowledge sharing authors experts professionals Tax Management India - taxmanagementindia - taxmanagement - taxmanagementindia.com - TMI - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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