2009 (6) TMI 274

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.... Murthy, Member (T)]. - The appellants were manufacturing Polyester Texturised Yarn (PTY) by utilizing the raw materials supplied by M/s. Rapier Machinery Manufacturing Company (India) Pvt. Ltd. on job work basis and for this purpose, they were availing benefit of Cenvat Credit under Cenvat Credit Rules, 2002/2004 (hereinafter referred to as CCR). In the impugned order, it has been held that Notif....

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....ment for job work under Cenvat Credit Rules, even after amendment of Notification No. 214/86. It has been held by the Tribunal that general provisions permit clearance under Rule 4(5)(a) of the CCR as now amended to exclude PTY, confiscation and penalty are not warranted and clearances effected under impugned Rule cannot be held to be irregular. He cites the following decisions in this regard: ....

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....he appellants manufacture PTY following the procedure prescribed under CCR. In this connection, it is to be mentioned that procedure prescribed under Notification No. 214/86 and Rule 4(5)(a) of CCR are not very different from each other. There is no dispute that the raw materials were sent under challan and finished products were returned to the principal. There is also no dispute that the princip....