TaxTMI 
TaxTMI 
2009 (9) TMI 838
X X X X Extracts X X X X
X X X X Extracts X X X X
....t it had used certain inputs in the job worked goods and the job worked goods upon being processed were being cleared without payment of duty. That point is not disputed being well evidenced from letter by M/s. DSM Anti-Infectives India Pvt. Ltd issued on 18-3-2004. A copy of this letter is at page 44 of the Appeal Folder. Learned Adjudicating Authority considering that the job worked goods were not sale but mere exchange/movement of semi-finished goods between raw material supplier and the job worker through challans under Rules and the appellant having already reversed the Modvat credit availed on the raw materials, there shall be no demand of 8% of the total price. 2. Being aggrieved by the decision of the learned Adjudicating Au....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ute. Principal manufacturer has stated in its letter dated 18-3-2004 that for carrying out job work, goods were sent to the appellant through challan under Cenvat Credit Rules, 2002 and job worked goods upon receipt having been used in the final goods, such goods were cleared on payment of duty. When this was useful evidence and the appeal was to be considered in the light of the decisions cited by Shri Bajaj as aforesaid, learned Commissioner (Appeals) failed to consider the role of evidence on the entire aspect of the matter in the light of the scheme of Cenvat Credit Rules. 6.2 There is no dispute that the scheme of Cenvat credit is to avoid cascading effect. Intermediate goods manufactured by job work is exempt from duty under N....
X X X X Extracts X X X X
X X X X Extracts X X X X
....granting fair opportunity of hearing to the appellants. Thus the impugned order is set aside in both the appeals remanding the matter to lower appellate authority. 8. [Order per : Rakesh Kumar, Member (T)]. - While I agree with my learned brother's order remanding this matter to the lower appellate authority for passing a reasoned and speaking order, after conducting inquiry and examining records as mentioned in paras 6.2 & 6.3 of the order, there are certain points which have also to be considered by the lower appellate authority. 9. The Appellant manufacture Pesticides (Technical Grade) using their own duty paid inputs and the same are cleared on payment of duty. They take Cenvat credit of the duty paid inputs received by ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the inputs which have gone into the manufacturer of job work goods cleared at nil rate of duty under Notification No. 214/86-C.E. to the principal manufacturers and also whether the Appellants are required to reverse this credit at all, and (b) Whether the Appellants are liable to pay, in terms of the provisions of Rule 6(3)(b) of the Cenvat Credit Rules, 2002, an amount equal to 8% of the value of the job work goods cleared at nil rate of duty to the principal manufacturer. 10. It is seen that while the Appellant claim that the Cenvat credit taken in respect of inputs used in or in relation to the manufacture of job work goods had been reversed by them, the lower appellate authority has upheld the demand in terms of the pro....