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TMI Blog2022 (3) TMI 502X X X X Extracts X X X X X X X X Extracts X X X X ..... No. 214/86-CE being a conditional Notification, it is optional for the job worker whether to avail the exemption or to pay the excise duty. The job worker undisputedly being a manufacturer has option either to avail exemption to avail by duty. In the present case job worker chose to pay the duty without availing the Notification No. 204-CE which cannot be objected, as there is no provision for compulsory availment of Notification No. 214/86-CE. As regard the duty paid by the job worker it is very much in relation to the job work goods, which was undisputedly used by the manufacturer of the final product. The appellant had cleared the final product on which duty was paid by the appellant. This tribunal has taken consistent view that in case of payment of duty by the job worker the same is available as a Cenvat Credit to the principal manufacturer - Reliance can be placed in the case of COMMISSIONERS OF CENTRAL EXCISE, CUSTOMS AND SERVICE TAX-VADODARA-I VERSUS M/S SARABHAI CHEMICALS [ 2015 (10) TMI 1057 - CESTAT AHMEDABAD] . Therefore, the issue is not res integra and appellant are entitled for the Cenvat Credit of duty paid by the job worker. Appeal allowed - decided in favor of app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Appellant. 4. I have carefully considered the submissions made by both the sides and perused the records. I find that as per the Cenvat Credit Rules, 2004 an assessee is entitled for the Cenvat Credit in respect of inputs used in relation to the manufacture of final product. In the present case when the appellant have received the input it was duty paid, hence they have were rightly taken the Cenvat Rule 4(5)(a) provides for movement of the input on which Cenvat Credit was availed . Accordingly such input was sent to the job worker in terms of Rule 4(5)(a). As regard the Notification No. 214/86-CE being a conditional Notification, it is optional for the job worker whether to avail the exemption or to pay the excise duty. The job worker undisputedly being a manufacturer has option either to avail exemption to avail by duty. In the present case job worker chose to pay the duty without availing the Notification No. 204-CE which cannot be objected, as there is no provision for compulsory availment of Notification No. 214/86-CE. As regard the duty paid by the job worker it is very much in relation to the job work goods, which was undisputedly used by the manufacturer of the final p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... missioner of Central Excise is on appeal. 5. The only question of law on which the Revenue has come up with the above appeal is as to whether the manufacturer is entitled to claim credit for the duty paid by the job worker or not. 6. The above issue has already been answered by the Supreme Court in INTERNATIONAL AUTO LTD. v. COMMISSIONER (2005 (183) ELT 239 (SC)). A Bench of this court has also held in COMMISSIONER OF CENTRAL EXCISE, PUDUCHERRY V. KOHINOOR PRINTERS PVT. LTD. (2015 (321) ELT 448) that the credit of duty paid by the job worker even when he is not required to pay it, can be availed by the manufacturer. This decision of a Bench of this court followed an earlier decision of the Supreme Court in COMMISSIONER v. NARMADA CHEMATUR PHARMACEUTICALS LTD. (2005 (179) ELT 276). 8. But, the Department went on a wrong presumption that credit had been claimed twice by the first respondent. As a matter of fact, the assessee did not claim credit twice over. At the time when the goods were supplied, they availed the credit. After the Company which undertook the job work, had paid the duty, even according to the Department, the job worker was not liable to pay it. Since they have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other purpose, and it is established from the records, challans or memos or any other document produced by the manufacturer or provider of output service taking the Cenvat credit that the goods are received back in the factory within one hundred and eighty days of their being sent to a job worker and if the inputs or the capital goods are not received back within one hundred eighty days, the manufacturer or provider of output service shall pay an amount equivalent to the Cenvat credit attributable to the inputs and he can take the Cenvat credit again when the inputs or capital goods are received back in his factory or in the premises of the provider of output service." 7. Thus on perusal of the above Rule, it is clear that a manufacturer who has availed Cenvat credit in respect of inputs, can send those inputs to his job worker for further processing, testing, repair, reconditioning, etc. or for manufacture of intermediate goods necessary for the manufacture of final products or for any other purpose, provided the processed inputs or intermediate products are returned back within a period of 180 days. There is no condition that for availing the facility of this Rule, the job wo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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