https://www.taxtmi.com/caselaws?id=268090 Capital goods used by a job worker to manufacture semi-finished goods cleared to the principal manufacturer under the job work exemption were not treated as being used in the manufacture of exempted final products for Modvat/Cenvat purposes. The governing principle was that where duty is ultimately paid at the principal manufacturer's stage, the job worker's clearance without duty does not attract the restriction meant for wholly exempted final products. The special job work procedure was applied to preserve the anti-cascading purpose of the credit scheme, and contrary departmental reliance was distinguished. Credit was therefore admissible, and the demand, interest, and penalty could not be sustained. en-us Fri, 19 Jun 2015 00:00:00 +0530 Tue, 03 May 2016 11:53:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=268090 Capital goods used by a job worker to manufacture semi-finished goods cleared to the principal manufacturer under the job work exemption were not treated as being used in the manufacture of exempted final products for Modvat/Cenvat purposes. The governing principle was that where duty is ultimately paid at the principal manufacturer's stage, the job worker's clearance without duty does not attract the restriction meant for wholly exempted final products. The special job work procedure was applied to preserve the anti-cascading purpose of the credit scheme, and contrary departmental reliance was distinguished. Credit was therefore admissible, and the demand, interest, and penalty could not be sustained. Case-Laws Central Excise Fri, 19 Jun 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=268090