2015 (11) TMI 1029

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..... ut certain manufacturing process, to some other premises and to bring back such goods to his factory, without payment of duty. Admittedly in the present case, the Commissioner has granted the permission to remove the yarn. As such, I find that the conditions of Rule 16B stands fully satisfied. Otherwise also, I find that the appellants received fibre which are converted into yarn and such yarn is .....

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..... e in accordance with the erstwhile Rule 16B of Central Excise Rules, 2002. As such, the issue stands decided. Otherwise also, if the appellants are made liable to pay the duty on the yarn so cleared to the job worker, they are entitled to Cenvat credit of the duty so paid, which can be utilised by them for payment of duty on the fabrics, so received by them from the job worker. As such, the en .....

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..... ment of duty. The only contention of the Revenue is that Rule 16B covers a situation where intermediate products are cleared to the job worker. Inasmuch as yarn cannot he held to be an intermediate semi-finished goods, the clearance of the same to the job worker in terms of Rule 16B, was not in accordance with the law. As such even though the Commissioner s permission was then to remove the yarn t .....

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..... on to remove the yarn. As such, I find that the conditions of Rule 16B stands fully satisfied. Otherwise also, I find that the appellants received fibre which are converted into yarn and such yarn is cleared for further conversion into fabrics by the job worker. As such, it is the said fabrics which have to be considered as the final product and the yarn is entitled to be considered as semi-finish .....

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..... rn so cleared to the job worker, they are entitled to Cenvat credit of the duty so paid, which can be utilised by them for payment of duty on the fabrics, so received by them from the job worker. As such, the entire situation is revenue neutral. On the basis of the above discussions, I set aside the impugned order and allow the appeal with the consequential relief to the appellants. (Dictated a .....

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