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TMI Blog2018 (5) TMI 871X X X X Extracts X X X X X X X X Extracts X X X X ..... job worker. The raw material supplied to the job worker, M/s HCIL or other reputed companies, were received back by them in “Specialized Tanker”. When the excise duty was paid on the final product, then, cenvat credit is permissible - the essential ingredients for availment of cenvat credit are the discharge of duty liability by the appellants. Appeal allowed - decided in favor of appellant. - Ex. Appeal Nos. 76138 to 76140/18 - ORDER NO - FO/A/75925-75927/2018 - Dated:- 4-5-2018 - Satish Chandra, President And Shri V. Padmanabhan, Technical Member S/Shri Kartik Kurmi S. B.Sharma, both Advs. Shri R. Agarwal, C.A. for the Appellant Shri S. S. Chattopadhyay, Supdt. (A.R.) for the Revenue ORDER Per Dr. Satish ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 12 to November, 2013 ; April, 2014 to February, 2015, the factory was closed, but the appellant has claimed the cenvat credit on the inputs, which was denied by the Department. Penalties were imposed on the appellant as well as its officers. Being aggrieved, the appellants have filed the present appeals. 3.1 With this background, Shri Kartik Kurmy, ld.Counsel for the appellants, submits that the appellants are engaged in the manufacture of final product i.e. coal tar pitch of various grades, which attracts central excise duty. The raw materials are Crude Oil Tar (partially distilled), S. M. Pitch/G.R.Pitch/M.Pitch and various grades of coal tar pitch, which also attracts Central Excise duty. It is the submission of the ld.Counsel that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from supplier to buyers under cover of excise invoices and on payment of duty as mentioned in Para 6.7 and 6.7.6 of the impugned order. It is not the case of the fake invoices. 3.4 The ld.Counsel for the appellant continues to argue by mentioning that the appellant was using Specialized Tankers having inbuilt Diesel Generator with electric heating facility and insulated tracing coils all around its body with automatic temperature control mechanism to activate the generator and temperature indicator to achieve the softening point and desirable temperature as mentioned in Para 6.7.7 of the impugned order. 3.5 It is the submission of the ld.Counsel that the thermal process carried out by them in the Specialized Tankers for achieving ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es and the same was directly supplied the said inputs without bringing the same into their factory during the period January, 2015 to February, 2015 to M/s HCIL for job work in accordance with Notification 214/86-CE dated 25.03.1986 read with Rule 4 (6) of the Cenvat Credit Rules, 2004 for conversion into liquid coal tar pitch under due intimation to the Department vide their letters dated. 30.09.2014 17.11.2014. Accordingly, the inputs supplied to the job worker, M/s HCIL, were received back by them in Specialized Tankers after conversion into liquid coal tar pitch within 180 days as stipulated under Rule 4 (5)(a)(i) of the Cenvat Credit Rules, 2004 and the same were supplied to M/s NALCO. Lastly, he prays that the impugned order may k ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ril, 2012 to November, 2013 April, 2014 to February, 2015. Thus, the factory was functional for the month of December, 2013 to March, 2014. It was stated that during this period, the appellant obtained the inputs after paying the Central Excise duty and supplied the same to the job worker, M/s HCIL, fromwhere, it was received back by them in Specialized Tankers after conversion into liquid coal tar pitch within 180 days as stipulated under Rule 4 (5)(a)(i) of the Cenvat Credit Rules, 2004 and the same were supplied to M/s NALCO, in the said Specialized Tankers wherein the incidental or ancillary processes for completion of the process of manufacture were undertaken as elaborated above. The said clearance were made at the time of clear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stage. Thereafter, the final products were delivered to the consumers, who are either Public Sector Undertakings or reputed Companies subject to Excise duty. As per Section 2 (e) of the Central Excise Act, 1944, the word factory , does not mean the registered factory premises. A part of the factory may be in the Specialized Tankers as the case is in the instant case. Thus, with the help of Specialized Tankers , the appellant is able to perform the process of manufacture. As per record, the Specialized Tankers having inbuilt Diesel Generator with electric heating facility and insulated tracing coils all around its body with automatic temperature control mechanism to activate the generator and temperature indicator to achieve the sof ..... X X X X Extracts X X X X X X X X Extracts X X X X
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