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TMI Blog2001 (9) TMI 154X X X X Extracts X X X X X X X X Extracts X X X X ..... under Rule 57G of Central Excise Rules, 1944 by M/s. Appollo Tyres Ltd. and M/s. CEAT Tyres Ltd. got registered as dealers in respect of excisable goods. The authorities below have disallowed the credit on the ground that the agreement with the above concerned tyre companies and the assessee makes it clear that the above dealers have supplied the goods to the appellants for job work. They held that companies are suppliers and all raw materials and goods have to be returned by the appellants on completion of job work. According to the department there is no sale of raw materials to the appellants for entitlement of credit since ownership remains vested with suppliers of raw material at all points of time. Shri Nambiar contended that to const ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he case of Commissioner of Central Excise, Meerut-II v. Prabhat Zarda Factory Ltd., reported in 2000 (119) E.L.T. 191 (T-LB) = 2000 (38) RLT 637 (CEGAT- L.B.) wherein it was observed that :- "According to Section 2(h), sale and purchase with their grammatical variations and cognate expressions, mean any transfer of the possession of goods by one person to another in the ordinary course of trade or business for cash or deferred payment or other valuable consideration. Thus, the transfer of the possession of the goods is the essence of sale. Accordingly, the place of removal for the above purpose will be the place from where the transfer of the possession of the goods is effected by the manufacturer to his buyer." 3. Shri Nambiar argued t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of goods for doing conversion work and payment of conversion charges cannot be taken as valuable consideration for transfer of possession of goods. 6. I have carefully considered the matter. The lower Authorities below have disallowed the Modvat credit on the ground that there was no sale involved in the transaction. It was held that the document issued is an invoice covering not the 'sale of goods' but for removal of goods for purposes other than sale. It was observed that the agreement with the said units and assessee makes it clear that the appellants were supplied with necessary raw materials by M/ s. Appollo Tyres Ltd. and M/ s. CEAT Tyres Ltd. on a stock transfer basis for doing conversion work and return of product for further pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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