9911796707
TMI Blog2016 (6) TMI 828X X X X Extracts X X X X X X X X Extracts X X X X ..... supplementary invoice was issued to pass on the duty so paid. The credit was availed by the appellant on these invoices. - Credit allowed - Demand set aside - Decided in favor of assessee. - Appeal No. E/1849/2009-EX(DB) - FINAL ORDER NO. 51965-EX(DB) - Dated:- 3-6-2016 - MS. ARCHANA WADHWA, MEMBER (JUDICIAL) AND SHRI B. RAVICHANDRAN, MEMBER (TECHNICAL) For the Petitioner : Shri Vivek Kohli, Advocate For the Respondent : Ms. Neha Garg, DR ORDER PER B. RAVICHANDRAN: The appeal is against order dated 27.02.2009 of Commissioner of Central Excise Delhi II. The appellants are engaged in the manufacture of flavors / perfumery compound liable to central excise duty. They were availing cenvat credit on various inputs in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... second time as duty paid on processed goods from the job worker. The proceedings concluded in the impugned order wherein the Commissioner held that the Cenvat Credit taken by the appellant on the goods supplied free of cost to the job worker during the period February 2005 to January 2006 amounting to ₹ 3,73,42,925/- is not available to the appellant. The amount is ordered to be recovered along with penalty of equivalent amount. 2. The Ld. Counsel for the appellant submitted that they have been clearing the duty paid inputs in terms of Rule 4(5)(a) of Cenvat Credit Rules and there is no need for reversal of credit for such clearances. After due processing by the job worker they have been receiving back the processed goods within ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ffered duty. He relied on the Tribunal s decision in the case of Bharat Heavy Electricals Ltd. Vs. CCE Meerut-2014 (300) ELT 422 (Tri-Del), Southern Lubrication Pvt. Ltd. Vs. CCE Bangalore-2013 (295) ELT 598 (Tri-Bang.) and Thermax Ltd. Vs. CCE Vadodara-2015 (326) ELT 369 (Tri-Amd). Finally, he submitted that whole exercise is revenue neutral and there is no extra benefit to the appellant in this exercise. He also strongly contested the imposition of equal amount of penalty without any legal basis when the appellant as well as job worker were following the declared approved procedure. It is only on different interpretation Department held that the processed goods are liable to duty. In these circumstances, there can be no penalty least of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Supra). The relevant portion of the decision is reproduced for better appreciation: 6. The Appellant, had been receiving the duty paid inputs and had availed the Cenvat Credit in respect of the same. These Cenvat Credit availed inputs were, thereafter, sent to their job workers under Rule 4(5)(a) of the Cenvat Credit Rules, 2004 without reversal of the credit for being processed into intermediate products. In this regard Rule 4(5)(a) is reproduced as under for appreciation of object of the grant of the Cenvat Credit:- (5)(a) the Cenvat Credit shall be allowed even if any inputs or capital goods as such or after being partially processed are sent to a job worker for further processing, testing, repair, re-conditioning [or for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ithin the stipulated period. The only point of dispute is as to whether the Appellant would be eligible for Cenvat Credit of the duty paid by the job workers on the intermediate products which had been paid on the value equal to the cost of the free supply inputs excluding excise duty (the credit of which had been taken by the Appellant) plus job charges plus value of any other inputs of their own used by the said job workers for manufacture of the intermediate products. The Department seeks to deny the Cenvat Credit of the duty on the intermediate product paid by the job-workers on the ground that on the same inputs, Cenvat Credit cannot be availed twice - first at the time of receipt the inputs by the Appellant in their factory from the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it in respect of inputs while receiving the same. In any case, the intermediate products made out of inputs are different from inputs and just because the Appellant have availed Cenvat Credit in respect of the inputs, the Cenvat Credit of duty, if any paid on the intermediate products by the job-workers, cannot be denied to the principal manufactures. 9. The above mentioned decision was followed in Thermax Ltd. (Supra). In Southern Lubrication Pvt. Ltd. (Supra) the Tribunal observed as under: Rule 4(5) allows Cenvat Credit on the inputs to be taken by the manufacturer of final product before removal of the inputs to the job worker. It was this right which was exercised by the present appellant and the same is not assailable (in th ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
