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TMI Blog2024 (12) TMI 732X X X X Extracts X X X X X X X X Extracts X X X X ..... nternational Auto Limited [ 2005 (3) TMI 132 - SUPREME COURT ] inasmuch as the appellant is job worker manufacturing the excisable goods using their own components and parts and some of the parts are supplied by the principal manufacturer on which the Cenvat credit was availed by the principal manufacturer. After the manufacture of job work goods the appellant have cleared the same to the principal manufacturer and the principal manufacturer in turn used the job work goods or cleared as such on payment of excise duty. It is this fact, in context of which the Hon ble Supreme Court held that since the principal manufacturer has cleared the ultimate goods on payment of duty, the value of parts supplied by the principal manufacturer of the job ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... She further submits that in some of the show cause notices the demand of duty was beyond the normal period invoking the extended period which is not sustainable on the ground of time-bar as there is no suppression of facts on the part of the appellant. 3. Shri Anoop Kumar Mudvel, learned Superintendent (AR) appearing on behalf of the Revenue reiterates the findings of the impugned order. He submits that the lower authorities have passed the order relying on the Hon ble Supreme Court judgment in the case of Ujagar Prints Limited 1989 (39) ELT 493 (SC) therefore, in view of the Ujagar Print Limited judgment all the material used in the manufacture of goods on job work basis is includible in the assessable value of the job work therefore, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as well as its own inputs in manufacturing the assemblies. It cleared the assemblies from its factories upon payment of excise duty on the completed floor plate assemblies by including the value of only the inputs put in by the appellant and adding thereto its service charges. 2. By show cause notice dated 22-2-1994, the appellant was called upon to show cause as to why it should not be charged with short levy of excise duty for the period 28-2-1993 to 31-8-1993 on the ground that the value of the TELCO s inputs in the assemblies should have been included in the assessable value of the assemblies. 3. The Departmental Authorities confirmed the demand and also levied penalty on the appellant s having negatived its contention that the demand w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led upon to pay the duty in respect of those inputs nor can the value of the inputs be added to the excisable value of the assemblies. 6. We are of the view that the submission of the appellant is correct. The Tribunal appears to have been confused between the manufacture of the final product, namely, excavators and the manufacture of the intermediate product, namely, the floor plate assemblies. The scheme of Modvat permits the person who clears the ultimate final product to take the benefit of the Modvat scheme at the time of clearance of such final product. The manufacturer of the final product, in this case TELCO, would therefore, be entitled not only to adjust the credit on the inputs supplied by it to the intermediate purchaser such as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6/2000 (M/s. International Auto Ltd. v. Commissioner of Central Excise, Bihar) these appeals must be allowed. The penalty imposed on the appellant is set aside. However, it is recorded that the appellant is not claiming refund of any duty that had been paid by it pursuant to the demand which is set aside by us. 9. These appeals are accordingly allowed. Following the above Supreme Court judgment, in another case of Manon Menon Limited (supra), the Hon ble Supreme Court passed the following judgment:- [Order]. - The respondent is the manufacturer of Hydraulic Control Lever Assembly and other assembly. These items are supplied by the respondent to Bharat Earth Movers Ltd. free of cost . The question is whether an excise duty is applicable on s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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