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TMI Blog2014 (9) TMI 630X X X X Extracts X X X X X X X X Extracts X X X X ..... ived the inputs in their factory but directly supplied from the principal manufacturer to the job workers premises and after the job work is done the goods were returned back to the respondent’s factory. As rightly discussed by the lower appellate authority in his order, the appellants raised 57F4 challans to the job workers only after reversing the credit in their books of account and they finally availed the credit only on receipt of the goods from the job workers, and all transactions of movement & receipt are maintained by the respondents. Following decision of Otis Elevator Co. (I) Ltd. CCE, Mumbai [2009 (6) TMI 825 - CESTAT, MUMBAI] - Decided against Revenue. - E/1254-1256/2004 - FINAL ORDER No. 40586-40588/2014 - Dated:- 10-9-2014 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y raised Modvat invoices/57F4 challans to the job workers. He submits that as per the Modvat provision, the primary conditions for availing credit is payment of duty on the inputs, receipt of the goods in the factory and usage of the inputs in the manufacture of final products. They have not fulfilled the mandatory procedural conditions stipulated in the Modvat provisions. He submits that non-observation of procedure is a substantial violation and therefore adjudicating authority had rightly disallowed the credit and imposed penalty. He relied on the decision of the Hon ble Supreme Court in the case of CCE, New Delhi Vs. Hari Chand Shri Gopal 2010 (260) ELT 3 (S.C.). 5. On the other hand, the Ld. Advocate for the respondents submits tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the submissions by both the sides, and gone through the records. The Department s main grounds of appeal against the decision of the Commissioner (Appeals) relates to the denial of modvat credit on the inputs without receipt of the inputs in the respondents factory but sent to the job workers directly from the principal supplier to the job workers for doing the job work. Another ground raised by the department is that the respondents have raised challans/modvatable invoices to facilitate availment of modvat credit by the job workers without supplying the raw materials from their factory. 7. On perusal of the records, I find that the period involved in the present appeals relates to November, 1999 to March, 2000 and the relevant provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same to the appellants. Here again, appellants confirm on receipt of the goods along with the duty paid invoices, appellants would proceed to avail credit. It is confirmed that credit would be availed only after payment of duty by JBM Sungwood and on receipt of goods along with duty paid invoices. 8. From the above sequence of movements, of inputs from supplier to the job worker and to the respondents, it is seen that they have not received the inputs in their factory but directly supplied from the principal manufacturer to the job workers premises and after the job work is done the goods were returned back to the respondent s factory. As rightly discussed by the lower appellate authority in his order, the appellants raised 57F4 cha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also not obtained the registration certificate, not executed the bond as provided under Chapter X, not maintained RG-16 Register prescribed for receipt of duty free inputs etc. The said case law is not applicable to the facts of the present case as the issue here is availment of modvat credit on the inputs supplied directly to the job workers premises and returned thereafter to the respondent s premises. 10. The Hon ble High Courts Tribunals in number of cases, it has been held that credit cannot be denied on the ground that the inputs were supplied directly to the job workers premises from the principal manufacturers. In the case of Otis Elevator Co. (I) Ltd. CCE, Mumbai (supra), the Hon ble Tribunal has allowed the appeal on the ide ..... X X X X Extracts X X X X X X X X Extracts X X X X
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