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Issues: (i) Whether calibration oil qualified as an input used in or in relation to the manufacture of the final product. (ii) Whether credit was admissible when taken beyond six months from the date of the duty paying document in the facts of direct sending of inputs to a job worker.
Issue (i): Whether calibration oil qualified as an input used in or in relation to the manufacture of the final product.
Analysis: The issue was covered by the assessee's own earlier case, which had already been affirmed by the Bombay High Court. On that basis, calibration oil was treated as an input used in or in relation to manufacture.
Conclusion: The issue was decided in favour of the assessee.
Issue (ii): Whether credit was admissible when taken beyond six months from the date of the duty paying document in the facts of direct sending of inputs to a job worker.
Analysis: The Tribunal held that the relevant documents were the bills of entry evidencing duty payment on imported inputs, and that the inputs had been sent directly to the job worker. In those circumstances, the nine-month period was held applicable and the credit was taken within that period.
Conclusion: The issue was decided in favour of the assessee.
Final Conclusion: The impugned denial of credit was not sustained and the Revenue's appeal failed.
Ratio Decidendi: Where imported inputs are sent directly to a job worker and the duty paying document evidencing import duty is the bill of entry, credit cannot be denied if taken within the applicable extended time limit, and an input recognised as used in or in relation to manufacture qualifies for credit.
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