TaxTMI 
TaxTMI 
2010 (9) TMI 329
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....9,016/- + education cess on the ground that Shri Hari had cleared 1,54,583 Kgs of PTY by issuing parallel invoices. Further differential duty of Rs. 2,57,318/- + education cess was demanded on the ground that the value had not been worked out correctly in respect of the goods manufactured on job work basis. Commissioner has passed impugned order whereby duty demand in respect of clearances of PTY for the period 9-7-2004 to 23-11-2004 against Shri Hari was confirmed. Further differential duty demand on the ground of under valuation was also confirmed. Penalty equal to duty demand was imposed and interest was also demanded. Further penalties were imposed on the other appellants also. 2. The matter came up before this Tribunal and this Tribunal allowed the appeal filed by all the appellants vide order Nos. A/1369-1374/WZB/ AH'BAD/2009 dated 4-6-2009 [2009 (244) E.L.T. 138 (Tri.-Ahmd.)]. 3. Revenue filed appeal against this order before the Hon'ble Gujarat High Court and the Hon'ble High Court set-aside the order of this Tribunal and restored the appeals to the files of this Tribunal. The Hon'ble High Court also ordered the Tribunal to decide the appeal afresh in accord....
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....goods - (i) on payment of duty for home consumption (on which duty of excise is leviable whether in whole or in part); or (ii) without payment of duty under bond for export; or (iia) by a manufacturer of dutiable and exempted final products, after discharging his obligation in respect of said goods under rule 6 of the CENVAT Credit Rules, 2002; or (iii)  without payment of duty to a unit in a free trade zone or to a hundred per cent. export-oriented undertaking or to a unit in an Electronic Hardware Technology Park or Software Technology Parks or supplied to the United Nations or an international organization for their official use or supplied to projects funded by them, on which exemption of duty is available under notification of the Government of India in the Ministry of Finance (Department of Revenue) No. 108/95-C.E., dated the 28th August, 1995, from whole of the duty of excise leviable thereon, which is specified in the First Schedule and the Second Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), the additional duty of excise leviable thereon, which is specified in the Schedule to the said Special Importance Act. (2) The exemption contained....
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....sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944), read with sub-section (3) of section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendment in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 214/86-Central Excise, dated the 25th March, 1986, and published in the Gazette of India vide number G.S.R. 547(E), dated the 25th March, 1986. [Notification No. 214/86-C.E., dated 25-3-1986 as amended vide Notification No. 26/2004-C.E., dated 9-7-2004] (IV) Rule 4(5)(a) of the Cenvat Credit Rules, 2002/2004 : The CENVAT credit shall be allowed even if any inputs or capital goods as such or after being partially processed are sent to a job worker for further processing, testing, repair, re-conditioning, or for the manufacture of intermediate goods necessary for the manufacture of final products or any other purpose, and it is established from the records, challans or memos or any other document produced by the manufacturer or provider....
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....ants as under :- "2. Learned advocate on behalf of the appellant submitted that the issue of eligibility for the benefit of manufacture on job work basis in respect of product excluded from Notification No. 214/86, is no longer res integra. It has been held in several decisions of the Tribunal that if the goods have been processed by following the provisions of Rule 57F(4)/57AC of CER, 1944 or Rule 4(5) of CER, 2004, duty cannot be demanded from the job worker. The provision of the law requires that the inputs after processing are returned back within stipulated period and if not returned, the credit taken on such inputs is to be recovered. If duty liability on processed inputs resulting in manufacture is cast on job worker, then principal manufacturer after receiving such items claim them to be duty paid and therefore pay no further duty and yet not be liable to reverse the credit. The concept of Rule 57F(4) or 57AC is to retain the supplier of the input as a manufacturer of such inputs out­sourced out of his factory. Such an onus cannot be cast on job worker. These observations have been made in the case of M/s. Trico Process Pvt. Ltd. v. CCE, Mumbai as reported in 20....
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....004 to 19-2-2005 on payment of duty as per Section 4 of the Central Excise Act, 1944. The said goods received by M/s. Rapier Machinery was used to manufacture its finished goods i.e. mixed grey fabrics/knitting fabrics and hence it is to be treated as captive consumption by their sister concern in light of Rule 9 of Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000. Therefore, the valuation of the said goods was to be done in terms of Rule 9 read with Rule 8 of Central Excise Valuation Rules, 2000. The show cause notice sought for demand of differential duty amounting to Rs. 2,57,318/- and Ed. Cess amounting to Rs. 5,055/- on this account." 7. In this case, Shri Hari did not sell the goods to Rapier. Rapier used it for further manufacture. Therefore the duty payable by Shri Hari has to be assessed on the basis of the value arrived at as per the proviso to Rule 9 of Central Excise Valuation Rules, which states that "in case, where the related person does not sell goods to use or consume such goods in the production or manufacture of articles, the value shall be determined in the manner specified in Rule 8". Rule 8 states that "where the e....