Cenvat Credit on moulds sent for job work cannot be reversed for non-return within 180 days under Rule 4(5)(b).

Rule 4(5)(b) of the Cenvat Credit Rules did not impose a 180-day return requirement for moulds, jigs, fixtures or dies sent to a job worker. The 180-day condition in Rule 4(5)(a) could not be imported into that provision, because Rule 4(5)(b) contained no express time limit. Cenvat credit therefore could not be reversed merely because the moulds were not received back within 180 days, and the Revenue's challenge failed.

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Issues: Whether moulds sent to job workers under Rule 4(5)(b) of the Cenvat Credit Rules had to be received back within 180 days, failing which the assessee was liable to reverse the Cenvat credit availed thereon.

Analysis: The dispute turned on the scope of Rule 4(5)(b), which governs movement of goods to a job worker. The provision relied on by the Revenue did not impose any requirement that moulds, jigs, fixtures or dies sent for job work be returned within 180 days. The condition of return within 180 days, as contained in Rule 4(5)(a), was not held applicable to such goods under Rule 4(5)(b). The Board instructions referred to in support of the assessee were also consistent with this interpretation.

Conclusion: The assessee was not required to reverse the Cenvat credit merely because the moulds were not received back within 180 days, and the Revenue's appeal failed.

Final Conclusion: Credit could not be denied or reversed on the basis of the 180-day return condition in the context of moulds sent for job work under the relevant rule.

Ratio Decidendi: In the absence of an express time-limit in Rule 4(5)(b), the 180-day return condition in Rule 4(5)(a) cannot be imported to goods such as moulds sent to a job worker, and Cenvat credit cannot be reversed solely for non-return within 180 days.

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