2006 (6) TMI 505

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....tification No. 8/2003-C.E. dated 1-3-2003. The Revenue proceeded against the appellants on two counts. Firstly, the appellants received raw material from M/s. Rayalaseema Hi-Strength Hypo Ltd. who are the owners of the brand name "Anisha". The appellants undertook the manufacture of Stable Bleaching Powder under the brand name "Anisha" out of the raw material supplied by M/s. Rayalaseema Hi-Strength Hypo Ltd. The finished products were sent to M/s. Rayalaseema Hi-Strength Hypo Ltd. who cleared the goods without payment of duty. The Revenue's case is that the appellants should have followed the procedure under Notification No. 214/86 dated 25-3-1986 and since they have not followed it, they are liable to discharge the duty on the finished pr....

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....les, the liability of paying the duty is on the supplier and not on the job worker. The following case laws were relied on :- (a)      M. Tex & D. K. Processors Pvt Ltd. v. CCE [2001 (136) E.L.T. 73 affirmed by S. C. as reported in 2002 (146) E.L.T. A309. (b)      CCE, Jaipur-II v. Tirupati Fabrics & Industries Ltd. [2001 (46) RLT 8] (c)      Eveready Inds. Ltd. v. CCE [2005 (186) E.L.T. 570] Therefore the demand of Rs. 16,02,333/- is not tenable. (ii)    The goods manufactured by them on job work basis are branded goods. The raw material supplier, M/s. Rayalaseema Hi-Strength Hypo Ltd. has supplied the packing material printed with the brand name....

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....ing the CENVAT credit that the goods are received back in the factory within one hundred and eighty days of their being sent to a job worker and if the inputs or the capital goods are not received back within one hundred eighty days, the manufacturer shall pay an amount equivalent to the CENVAT credit attributed to the inputs or capital goods by debiting the CENVAT credit or otherwise, but the manufacturer can take the CENVAT credit again when the inputs or capital goods are received back in his factory." A close reading of the above rulings makes it clear that a manufacturer can avail CENVAT credit on inputs or capital goods as such or after being partially processed are sent to the job worker for further processing, test, repair, recondi....