TaxTMI Login
Just a moment...
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Join Channel
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether CENVAT credit could be denied and duty demand sustained on job-work clearances treated as exempted goods, and whether Rule 6 of the CENVAT Credit Rules, 2004 applied where the principal manufacturer undertook duty liability under Notification No. 214/86-CE.
Analysis: The dispute turned on the legal character of goods manufactured on job-work basis and cleared under the declaration given by the principal manufacturer. The Tribunal followed the settled ratio of the Larger Bench in Sterlite Industries, as affirmed by the Bombay High Court, that a job worker receiving goods from the manufacturer under the relevant excise regime is entitled to credit on other inputs used in such manufacture and that the provision analogous to Rule 57C is not attracted in such a situation. On that basis, the Tribunal held that the job-work clearances could not be treated as exempted goods for denying credit, and the demand, interest, and penalty could not survive.
Conclusion: The issue was decided in favour of the assessee; Rule 6 was held inapplicable and the denial of credit was set aside.
Final Conclusion: The impugned order was set aside and the appeal was allowed with consequential benefit in accordance with law.
Ratio Decidendi: Where job-work goods are manufactured under a statutory duty-assumption arrangement by the principal manufacturer, they are not to be treated as exempted goods for denying CENVAT credit on inputs used by the job worker, and the corresponding denial of credit, demand, interest, and penalty cannot be sustained.
TaxTMI 
