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TMI Blog2019 (1) TMI 660X X X X Extracts X X X X X X X X Extracts X X X X ..... he inputs or the resultant product manufactured therefrom have to be received back by the manufacturer within 180 days of their being sent from the factory. In the present case, it is undisputed fact that the appellant had removed the raw materials from the bonded warehouse to its job-worker, namely, M/s. Svizera Labs Pvt Ltd for manufacture of finished excisable goods under sub-contracting basis. Since the raw material/inputs were removed by the appellant for further manufacture of the finished goods, the case of the appellant falls under the purview of sub-rule (5)(a) of Rule 4 of the Rules. The permission letter for removal of raw material withdrawn subsequently by the department with effect from 29/01/2007 cannot be the ground to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iated show cause proceedings for confirmation of the Central Excise duty demand on the appellant. The show cause notice has alleged that under sub-rule (5) of Rule 3 of the CENVAT Credit Rules, 2004, the appellant was liable to pay an amount equal to the credit availed in respect of such input and the removal shall be made under the cover of invoice as prescribed under Rule 11 of the rules. The show cause notice issued by the department was adjudicated vide the impugned order dated 26/06/2009, wherein Central Excise duty demand of ₹ 1,05,65,842/- was confirmed along with interest. The impugned order also imposed redemption fine of ₹ 25 lakhs in lieu of confiscation of the raw materials cleared from the factory, without reversal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the case records. 6. Sub-rule (5) of Rule 3 deals with the situation of payment of equal amount of CENVAT credit availed in respect of inputs, when the same were removed as such from the factory of the manufacturer. Sub-rule (5a) of Rule 4 allowed a manufacturer to retain the CENVAT credit in respect of inputs removed as such or after it partially processed, when the same are sent to a job-worker for further processing. The said sub-rule mandates that the inputs or the resultant product manufactured therefrom have to be received back by the manufacturer within 180 days of their being sent from the factory. In the present case, it is undisputed fact that the appellant had removed the raw materials from the bonded warehouse to its job- ..... X X X X Extracts X X X X X X X X Extracts X X X X
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