9911796707
TMI Blog2008 (3) TMI 184X X X X Extracts X X X X X X X X Extracts X X X X ..... K. Jayaraman, Member (T) Shri T. C. Raja Dass, SDR, for the Appellant. Shri S. R. Madhav Murthy, Advocate, for the Respondents. [Order Per : Dr. S.L. Peeran, Member (J) (Oral)]. - Revenue is aggrieved with Order-in-Appeal No.92/2005 CE dated 13.9.2005 by which the Commissioner (A) has upheld the prayer of the assessee to avail cenvat credit in respect of inputs used in the manufacture of job work goods which are sent to their principal manufacturer under Notification No. 214/86 CE dated 25.3.1986. The finding portion of the commissioner (A) is reproduced herein below : Findings: I have gone through the case records, written submission made in the grounds of appeal and also the oral submission made at the time of personal hearing. The i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncipal manufacturer would not be hit by the provision of Rule 57C of the CER. 1944. I further find that in case of Bharat Fritz Werners Ltd Vs CCE Bangalore III Commissionerate, the Honorable CESTAT Bangalore in final order no. 1011/2005 dated 23.6.2005 have decided that goods which ace sent to the principal manufacturer are not exempted goods. I therefore hold that the appellant is eligible for cenvat credit in respect of inputs used in the manufacture of job work goods which are further sent to their principal manufacturer under Notification No. 214/86. In view of above discussions, I set aside the OIO No.57/2005 dated 14.7.2005 passed by the Assistant Commissioner of Central Excise, Rajajinagar division, and allow the appeal filed by M/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... istry of Law dealt in the paragraph of 9 in the said decision. It was opined in the said letter of the Law Ministry that the term 'exempted' has a definite connotation. The same as attributed to the notification issued by the Central Government. Similarly, the chargeable to nil rate of duty would refer to the tariff rate being nil and the goods cleared in terms of provision of Rule 199BB would not be covered by the said expression inasmuch as the same are not chargeable to nil rate. In the present case, we find the job worker could have cleared the goods on payment of duty and manufacturer could have claimed credit of the same. It is only under the special procedure laid down in terms of the Rule 57F(3) that the duty does not get paid at th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y is levied both on the inputs and the finished goods. Rule 57D(2), which has been extracted hereinabove, shows that in the manufacture of a final product an intermediate product may also come into existence. Thus in cases where intermediate product may also come into existence. Thus in cases where intermediate product comes into existence, even though no duty has been chargeable to Nil rate of duty, credit would still be allowed so long as duty is paid on the final product. 9. In cases of manufacturers like the Appellants the final product is the tractor. The intermediate product would be parts which are manufactured for being used in the tractor. In such a case the parts would not be the final product. Thus Rule 57C would have no applica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in the case of M/s. Bharat Fritz Werner Limited Vs. CCE, Bangaloreby Final Order No.1011/2005 dated 23.6.2005, by which this Bench allowed the assessee's appeal. The findings recorded in Para 7 is reproduced herein below : 7. We have gone through the records of the case carefully. The appellants received certain dutiable inputs and manufactured machines. They utilised these machines for job work. After job work, the goods were sent under 57F(4) Challan to the principal manufacturers. The department is of the view that the machines manufactured by the appellant are exclusively used in the manufacture of the exempted goods. Therefore, the inputs are not entitled for Cenvat credit. In other words, the department is equating goods sent unde ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
