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TMI Blog2005 (6) TMI 165X X X X Extracts X X X X X X X X Extracts X X X X ..... ively 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 under 57F(4) challan with exempted goods. This is not correct. The goods, which are sent to principal manufacturer, are not exempted goods. Ultimately, they would be cleared on payment of duty. Hence, the reasoning adopted by the department is not correct. Moreover, all the case laws cited by the appellant are very relevant in deciding this issue. In the case of KSH International [ 2004 (1) TMI 721 - ITAT MUMBAI] , the Tribunal rejected the Revenue appeal and held that clearance of goods on job work does not amount to clearance under full exemption or at Nil rate of duty. The ra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceived for job work from customers like MICO and Ashok Leyland. The raw materials were sent by the customers as per procedure laid down in Rule 57F(4) of the erstwhile CE Rules, 1944 for processing. After processing, the same goods were sent back under the same challan issued under Rule 57F(4). The original authority, in the order dated 30-7-2004, held that the credit availed on the inputs used in the manufacture of capitalized machines exclusively used for job work was not admissible and demanded duty of Rs. 21,85,946/- under erstwhile Rule 57AH/57-I/57U of the Rules and Rule 12 of Cenvat Credit Rules. Interest under Section 11AB was also demanded. Equal penalty under Section 11AC was imposed. 3. The Commissioner (Appeals), in the impugned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7/86-C.E. Rule 57C would have no application. Bajaj Tempo Ltd. v. CCE, Pune - 1994 (69) E.L.T. 122 (Tribunal). It has been held that inputs utilised in the manufacture of components which are sent to another unit of manufacturer without payment of duty under Chapter X Procedure for further utilisation in the manufacture of ultimate final product are eligible for Modvat credit. Jindal Polymers v. CCE, Meerut - 2001 (135) E.L.T. 657 (Tri.- Del.). It has been held that Modvat credit would be available on inputs used for job work by the assessee when the goods manufactured on job work are cleared without payment of duty to the parent manufacturer. CCE, Mumbai-VII v. K.S.H. International Ltd . - 2004 (63) RLT 803 (CESTAT- Mumbai). It has been he ..... X X X X Extracts X X X X X X X X Extracts X X X X
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