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TMI Blog2015 (10) TMI 1057X X X X Extracts X X X X X X X X Extracts X X X X ..... ped. 2. After hearing both the sides and on perusal of the records, we find that the respondent was engaged in the manufacture of Chemicals.They supplied the material to the job worker under the provisions of Rule 57F (3) of the erstwhile Central Excise Rule 1944. The job worker, after processing the material returned to the respondent on payment of duty under the cover of invoice.The respondent availed Modvat Credit on the basis of the invoice issued by the job worker. The job worker had not availed benefit of exemption under Notification No 214/86-CE dtd 25.3.1986. By the impugned Show Cause Notice, it was proposed to deny the Modvat Credit on intermediate goods supplied by the job worker, during the period from March 1993 to July 1996. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... processed are sent to a job-worker for further processing, testing, repair, re-conditioning Tor for the manufacture of intermediate goods necessary for the manufacture of final products or any other purpose, and it is established from the records, challans or memos or any other document produced by the manufacturer or provider of output service taking the Cenvat credit that the goods are received back in the factory within one hundred and eight days of their being sent to a job worker and if the inputs or the capital goods are not received back within one hundred eight days, the manufacturer or provider of output service shall pay an amount equivalent to the Cenvat credit attributable to the inputs and he can take the Cenvat credit again w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed twice - first at the time of receipt the inputs by the Appellant in their factory from the input manufacturers and second time in respect of duty paid on intermediates goods made out of input supplied by Appellant upon receiving the same from the job workers. Logically, the ground on which the Cenvat credit is sought to be denied is totally incorrect. There is no condition in Rule 4(5)(a) of the Cenvat Credit Rules, 2004 that job worker should necessarily avail of full duty Exemption under Notification No. 214/86-C.E.This exemption being a conditional exemption, is not required to be compulsorily availed by job workers. If the job worker decides to pay the duty on the intermediate products manufactured by him on job-work basis for the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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