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TMI Blog2014 (11) TMI 155X X X X Extracts X X X X X X X X Extracts X X X X ..... ; The appellants are engaged in the production of electronic control unit, alternator assembly etc. They had taken Cenvat credit of the CVD paid on the goods imported by them viz. stator assembly, spacer, rectifier assembly etc. (hereinafter referred to as inputs). The imported inputs were supplied by them to their job workers M/s Lucas TVS Ltd. under challans after taking Cenvat credit of CVD paid thereon. After completion of the job work M/s Lucas TVS Ltd. sent the goods back under cover of invoice/delivery challan and after paying duty leviable thereon as they did not avail of the benefit of Notification No. 214/86-CE dated 23.3.1986. The appellants took Cenvat credit of the duty paid by M/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntention. 4. We have considered the facts and submissions. We find that the issue is covered in the appellants favour by the judgement of the Hon'ble High Court of Gujarat in the case of CCE, Ahmedabad-I Vs. Rohan Dyes & Intermediated Ltd. - 2012 (284) ELT 484 (Guj.). In paras 11, 12, 13 and 14 of the said judgement, the Hon'ble High Court held as under :- 11. In such case, it was contended on behalf of the appellant that the entire transaction between the TELCO and the appellant was covered by Rule 57F(2)(b) of the Central Excise Rules, 1944. According to the said appellant under those Rules, the assessee is the manufacturer of final product and in that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... floor plate assemblies. The scheme of Modvat permits the person who clears the ultimate final product to take the benefit of the Modvat scheme at the time of clearance of such final product. The manufacturer of the final product, in this case TELCO, would therefore, be entitled not only to adjust the credit on the inputs supplied by it to the intermediate purchaser such as the appellant but also to the credit for the duty paid by the intermediate purchaser on its products. The reliance on the decision in Burn Standard Company Ltd. (supra) by the Tribunal was misplaced. That case has no doubt held that the value of the free inputs were to be included in the final product. In that case, the final product was wagons and the question was wheth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g No. 214/86 exempting the job workers from paying duty in view of the mandatory provision of Section 5A(1A) of the Act. Similarly, we are also not impressed by the submission of Mr. Ravani that it was a case of sale and not the case of job work so as to attract the aforesaid principle laid down by the Supreme Court in the above case. On consideration of the entire materials on record, we thus hold that the Tribunal below rightly applied the decision of the Supreme Court in the case of International Auto Ltd. (supra) to the facts of the present case and allowed the appeal of the respondents. Similar view was held by Hon'ble CESTAT in respect of Hindustan Wire Products Ltd. Vs. Collector of Central Excise, Chandigarh - 1995 (76) ELT 377 (T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rmal procedure applicable for availing of modvat credit in respect of duty paid goods can be followed by the manufacturer of the final product. In the present case, the job worker has chosen to pay the duty and after clearance of the same, the appellants had taken modvat credit in respect of the duty paid by the job worker who has not taken credit in respect of the inputs received by him. Though in this case the appellants have not complied with the procedural requirement of Rule 57F(2), the substantive benefit cannot be denied to them, if otherwise due. Further, the Revenue cannot be said to have suffered any prejudice in as much as the appellants took only the credit of duty paid at the intermediate stage when they received the duty paid ..... X X X X Extracts X X X X X X X X Extracts X X X X
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