2001 (11) TMI 202 - AT - Central Excise

Manufacturing company wins Modvat credit appeal for inputs used by job worker, citing precedent

The appellant, engaged in manufacturing paper covered copper strips, was granted entitlement to Modvat credit for inputs used by a job worker. The ... Modvat/Cenvat Issues involved: Entitlement to Modvat credit for inputs used by job worker; Admissibility of Modvat credit on insulated craft paper; Captive consumption of inputs for final products.Entitlement to Modvat credit for inputs used by job worker: The appellant, engaged in manufacturing paper covered copper strips, received inputs from the principal manufacturer for processing and subsequent return. Duty on final products paid by principal manufacturer. Show cause notice alleged inadmissible Modvat credit on insulated craft paper used in processing of copper wire/rods. Assistant Commissioner and appellate authority upheld the demand. Appellant referred to Tribunal judgment in Jindal Polymers case, where similar claim was upheld. Tribunal allowed the appeal, setting aside the impugned order.Admissibility of Modvat credit on insulated craft paper: Appellant's inputs captively consumed for final products cleared by themselves and on job work basis. Tribunal's judgment in Jindal Polymers case deemed applicable to this scenario. Appeal allowed, setting aside the impugned order and granting consequential relief.Captive consumption of inputs for final products: Appellant's inputs used for final products cleared by themselves and on job work basis. Tribunal's decision in Jindal Polymers case considered relevant. Both appeals allowed, with consequential relief granted after setting aside the impugned orders.