Tribunal grants cenvat credit on job work goods, aligning with precedent rulings

The Tribunal allowed the appeal, granting cenvat credit on inputs and capital goods for goods manufactured on job work basis, despite the Revenue's argument post-amendment of Notification No.214/86 by Notification No.20/2003-CE. The decision aligned with precedent rulings emphasizing duty payment on final products and cenvat credit availability, overturning the demand of Rs.1,24,663/- imposed by the original adjudicating authority and upheld by the Commissioner (Appeals).

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Issues:
1. Availment of cenvat credit on inputs and capital goods for goods manufactured on job work basis.
2. Interpretation of Notification No.214/86 and its amendment by Notification No.20/2003-CE.
3. Admissibility of cenvat credit in cases of goods manufactured on job work basis post-amendment.

Analysis:
1. The appellant availed cenvat credit on inputs and capital goods for goods manufactured on job work basis, leading to a demand of Rs.1,24,663/-. The original adjudicating authority imposed penalty and interest, which was upheld by the Commissioner (Appeals).

2. The appellant argued that a precedent decision by the Larger Bench in the case of Sterlite Industries India Pvt. Ltd. supported the admissibility of cenvat credit in such cases. Additionally, the decision in M/s. Vishal Pipes Ltd. Vs. CCE Noida was cited. However, the Revenue contended that post-amendment of Notification No.214/86 by Notification No.20/2003-CE, goods cleared on job work basis were deemed exempted, justifying the demand.

3. Despite the matter being listed for considering waiver of pre-deposit and stay, both parties consented to the appeal being decided. The Tribunal noted that the issue was covered by the precedent decision of the Larger Bench, allowing the appeal without pre-deposit and granting stay.

4. The Tribunal analyzed the implications of the amendment to Notification No.214/86 by Notification No.20/2003-CE. It was observed that the decision of the Larger Bench in Sterlite Industries India Pvt. Ltd. was not solely based on the absence of Section 5A in the original notification. The Tribunal emphasized that the obligation for duty payment on final products and the availability of cenvat credit in various scenarios influenced the decision. Ultimately, the Tribunal upheld the appeal, following the precedent decisions and allowing cenvat credit in the present case.

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