TaxTMI 
TaxTMI 
1995 (5) TMI 104
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....had earlier not been included in the value of distributor supplied by the said supplier, for the purpose of assessment. 2. The brief facts of the case are that the Respondents had sent duty paid distributor cover under Rule 57F(2) of the Central Excise Rules, 1944 to one of their job workers who used it in the manufacture of distributor cover. These distributor covers were cleared on payment of duty and the same were received by the Respondents under duty paying documents and they took Modvat credit for the duty paid thereon. Thereafter, some further duty was found to be payable on the distributor covers as the job worker did not include cost of the inserts supplied by the respondents in the value of the distributor covers. The origin....
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....2), the job worker does not have to pay any duty since they are supposed to avail the exemption under Notification 214/86, no legal objection could be raised in case in they chose to pay duty and clear the goods to their principals. I also agree with the assessee that the insert has totally lost the identity and now become a component of the distributor cover on which differential duty was paid by the job worker. Having paid the duty in terms of Rule 57F(2), M/s. Lucas TVS Ltd. are legally entitled to avail credit of this duty also. 4. The learned DR reiterated the grounds of appeal and pleaded that the respondents had availed of the benefit of Rule 57F(2) and cleared the inserts without payment of duty to the job worker, who supplied....
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.... in respect of duty paid thereon. - (1) The inputs in respect of which a credit of duty has been allowed under Rule 57A may - (i) be used in, or, in relation to, the manufacture of final products for which such inputs have been brought into the factory; or (ii) be removed, subject to the prior permission of the Collector of C. Excise, from the factory for home consumption or for export on payment of appropriate duty of excise or for export under bond, as if such inputs have been manufactured in the said factory : Provided that where the inputs are removed from the factory for home consumption on payment of duty of excise, such duty of excise shall in no case be less than the amount of credit that has been allowed in respect of ....