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TMI BlogPrincipal Manufacturer is entitled to avail Cenvat credit of duty paid by job worker on intermediate goods, who choose to pay duty instead of availing exemptionX X X X Extracts X X X X X X X X Extracts X X X X ..... Principal Manufacturer is entitled to avail Cenvat credit of duty paid by job worker on intermediate goods, who choose to pay duty instead of availing exemption - By: - Bimal jain - Central Excise - Dated:- 11-12-2014 - - Dear Professional Colleague, Principal Manufacturer is entitled to avail Cenvat credit of duty paid by job worker on intermediate goods, who choose to pay duty instead of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... availing exemption We are sharing with you an important judgement of the Hon ble CESTAT, Ahmedabad, in the case of Thermax Ltd. Vs. Commissioner of Central Excise, Vadodara-I [2014 (9) TMI 809 - CESTAT AHMEDABAD ] on following issue: Issue: Whether Principal manufacturer is entitled to avail Cenvat credit on duty paid by the worker towards intermediate goods, who choose to pay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duty instead of availing exemption? Facts and background: Thermax Ltd. ( the Appellant ) had cleared certain inputs to its job workers as per the procedure laid down under Rule 4(5)(a) of the Cenvat Credit Rules, 2004 ( the Credit Rules ) for manufacture of intermediate goods. The job worker had not taken exemption under Notification No. 214/86-CE dated March 25, 1986 ( the E ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xemption Notification ) and paid duty on intermediate goods on value including inputs supplied free by the Appellant. Thereafter, the Appellant had taken Cenvat credit of duty paid by the job worker on intermediate goods. The Department argued that the Appellant had taken Cenvat Credit twice on the same inputs viz. first, on receipt from supplier and secondly, by inclusion thereof in value of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... intermediate goods. Accordingly the Department sought reversal of double credit. Being aggrieved, the Appellant preferred an appeal before the Hon ble CESTAT, Ahmedabad. Held: The Hon ble CESTAT, Ahmedabad perusal of the Rule 4(5)(a) of the Credit Rules and relying upon the following cases: Bharat Heavy Electricals Ltd. Vs. CCE and ST[2014 (3) TMI 203 - CESTAT NEW DELHI] ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; Ujagar Prints Vs. Union of India[1989 (1) TMI 124 - SUPREME COURT OF INDIA ] Held that the Exemption Notification and Rule 4(5)(a) of the Credit Rules does not mandate compulsory availment of exemption. Since duty was actually paid by job worker, and intermediate goods were different from inputs supplied by the Appellant, the Appellant was eligible for Cenvat credit of duty so p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid. Hope the information will assist you in your Professional endeavors. In case of any query/ information, please do not hesitate to write back to us. Thanks and Best Regards, Bimal Jain FCA, FCS, LLB, B.Com (Hons) Flat No. 34B, Ground Floor, Pocket - 1, Mayur Vihar, Phase - I, Delhi 110091, India Desktel: +91-11-22757595/ 42427056 Mobile: +91 9810604563 Email: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... [email protected] Web: www.a2ztaxcorp.com Disclaimer: The contents of this document are solely for informational purpose. It does not constitute professional advice or recommendation of firm. Neither the authors nor firm and its affiliates accepts any liabilities for any loss or damage of any kind arising out of any information in this document nor for any actions taken in reliance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thereon. Readers are advised to consult the professional for understanding applicability of this newsletter in the respective scenarios. While due care has been taken in preparing this document, the existence of mistakes and omissions herein is not ruled out. No part of this document should be distributed or copied (except for personal, non-commercial use) without our written permission. - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - 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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