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TMI Blog2014 (2) TMI 482X X X X Extracts X X X X X X X X Extracts X X X X ..... ufactured from the said factory, they were also getting sugar confectionaries manufactured from other manufacturers on job work basis situated at different places. Appellant supplied inputs like condensed milk, glucose and sugar directly from the suppliers to the job workers. After manufacture of sugar confectionaries by the job workers, the job worker paid the duty and dispatched the goods directly to various depots of M/s. Lotte India Corpn. Ltd.(appellant). In connection with transportation of inputs to the job worker's premises and finished goods from job worker to various depots, the appellant made arrangements for such transportation and paid transportation charges along with service tax. Cenvat credit on such service tax paid was tak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the order of Commissioner (Appeals), the appellants have filed this appeal before the Tribunal. 4. The Ld. Advocate for the appellant submits that since the appellant supplied the raw materials for manufacture of the goods by the job worker, and the appellant exercised quality control on final products manufactured, the appellant has to be considered as 'principal manufacturer' in respect of the goods manufactured by the job worker. Once the appellant is the principal manufacturer of the goods, the input services used in relation to such manufacturing activity like transporting the goods to the place of manufacture and transporting final product from the factory of manufacture to the depot of the appellant has to be considered as "input se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dit and thereafter sent the goods to the job worker and cleared the goods on payment of duty from the premises of the job worker under Rule 4 (6) of CCR 04. He relies on the following decisions of the Tribunal:- i. Amul Industries Pvt. Ltd. - 2007 (79) RLT 415; ii. CCE Bhuvaneswar Vs Konark Wires (P) Ltd. - 1995 (77) ELT 315 iii. Veekay Polycats Vs CCE New Delhi- 2000 (39) RLT 585 CEGAT iv. R.D. Electronics Pvt. Ltd. Vs CCE Delhi -2003 (161) ELT 1023 (Tri.-Del.) v. Ventron Chemicals Ltd. 2001 (430) RLT 107 vi. Rajarambapu SSK Ltd. Vs CCE -2007 (78) RLT 97 vii. Indorama Textiles Ltd. -2007 (80) RLT 620 (Tri.) 8. In view of above decisions, he submits that the credits taken were properly taken. If at all not properly taken there was n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the goods involved, they cannot be considered as "manufacturer" for goods manufactured by job-workers. When the appellant is not the manufacturer in respect of goods manufactured by the job worker, appellant could not have taken cenvat credit on service tax paid on transportation of inputs or final products. Therefore, he submits that credit was taken wrongly and the same has to be reversed. 11. He argues that supplier of raw material cannot be considered as "manufacturer" and relies on the following decisions :- 1. O.R.G. Systems Vs CCE Vadodara -1998 (102) ELT 3 (SC) 2. CCE Vs Gwalior Chemicals Ind.Ltd. 2004 (172) ELT 186 (Tri-Del.) 3. Sri Raghavendra Food Industries Vs CCE., Bangalore - 1999 (105) ELT 326 (Tri.) 4. Aldowin Vs CC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e final product manufactured by job-worker by following various rules enabling such payment as distinct from facts of this case. Therefore I do not find any reason to allow Cenvat credit in such circumstances. 15. The argument that the credit on such transportation service can be taken by considering such activity as service in relation to business has been negative by the Hon Karnataka High Court in the case of CST Vs. ABB Ltd- 2011 (23) S.T.R. 97 (Kar.) 16. From the facts of the case, I am of the view that the job-worker or the appellant could have taken credit if service tax incidence was borne by the person paying duty on final product and appropriate procedure was followed. However, procedures laid down for taking credit cannot be by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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