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TMI Blog2007 (10) TMI 152X X X X Extracts X X X X X X X X Extracts X X X X ..... ses of M/s. Celebrity Fashions Ltd. (CFL., for short) by supplying the raw material (fabric) to them during the period August, 2003 to March, 2004 when the garments were dutiable. The appellants and M/s. CFL. are family concerns. The practice which was prevalent during the material period was that M/s. CFL would procure raw material in the name of their sister units including the appellants and allocate these goods to such units depending upon their export quota as determined by the Textile Committee. In the case of the appellants, a major part of the quantity of fabric procured by M/s. CFL in the name of the appellants were retained by them for job work and the balance quantity was supplied to the appellants for conversion to garments. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tile articles manufactured on his account, on job work basis, shall obtain registration, maintain accounts, pay duty leviable on such goods and comply with all the relevant provisions of the Central Excise Rules as if he is an assessee. The proviso to this sub-rule gives the job worker option to agree to obtain registration, maintain accounts, pay duty leviable on such goods and comply with other relevant provisions. According to sub-rule 2, if the person who en gages job worker wants to clear excisable goods for home consumption or for exports, from the premises of job worker, he shall pay duty on such excisable goods and prepare an invoice in the prescribed manner except for mentioning the date and time of removal of goods on such invoice ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the case of the appellants, reiterated by their counsel, that sub-rule (3) of Rule 12B permitted the fabrics (input), pro cured in the name of the appellants, to be allowed to be retained by the job worker. This sub-rule reads as under :- "(3) The said person may supply or cause to supply to a job worker, the following goods, namely, (a) inputs in respect of which he may or may not have availed CENVAT credit in terms of the CENVAT Credit Rules, 2002, without reversal of the credit thereon; or (b) goods manufactured in the factory of the said person without payment of duty; under a challan, consignment note or any other document (herein after referred to as "document") as described in sub-rule (4), duly signed by him or his authori ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsel has pointed out that, in the absence of movement of goods from the premises of the appellants to those of the job worker, these provisions are not applicable. Again, we have found a valid point in these arguments of learned counsel. 4. Sub-rule (7) of Rule 12B enables the job worker to clear the job- worked goods for home consumption or for exports, subject to receipt of an invoice from the person for whom the job work was done. It is not in dispute that the job-worked goods (garments) were cleared for exports from the premises of M/s. CFL (job worker). It is also not in dispute that such exports were made after receipt, by M/s. CFL, of invoice from the appellants. It would thus appear that the requirement of sub-rule 7 was fulfill ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner's order for recovery of the amount from the appellants is bad in law. 7. Learned SDR has insisted that the benefit of CENVAT credit should be denied to the appellants on the ground of non-compliance with procedural requirements under Rule 12B (4). In this connection, he has also relied on the Supreme Court's decision Indian Aluminium Company Ltd, v. Thane Municipal Corporation [1991 (55) E.L.T. 454 (S.C.)], wherein it was held that non-observance of even procedural condition was not to be condoned if it was likely to facilitate commission of fraud or to introduce administrative inconvenience. In the present case, the Revenue has no case that the appellants had caused administrative in convenience or facilitated commiss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ments (nos.) 11/03 134363.2 51935.2 35685 12/03 89400.9 77003.5 37710 1/04 55207.1 16050.4 7536 2/04 111567.5 438.9 154 3/04 66983.0 32.3 10 Total 457521.7 145460.3 81095 On the basis of the above data, the department alleged that the consumption of fabrics was several times more than the quantity of fabrics purchased. On this basis, it was further alleged that the appellants had not actually received so much quantity of fabrics as shown in the relevant invoices and had taken CEN VAT credi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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