2011 (8) TMI 621

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....th provision to plug in a male jack to facilitate connection to the telephone instrument from external line. The telephone instrument can be directly connected to the line without the use of MTR which is therefore only an accessory to the telephone instrument. While appellant is manufacturing telephone instrument by themselves, so far as MTRs are concerned, appellant gets the item manufactured by other SSI units engaged on job work basis. Under the arrangement with the manufacturing units appellant purchases components and supplies the same to the SSI units for manufacture and return of the same against payment of labour charges. On the purchase of components for MTR appellant claimed duty credit following the procedure prescribed under Rul....

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....n the MTRs cleared by them after receipt from job workers, appellant after two years from availing duty credit on components and inputs, reversed the credit. The Assessing Officer, however, held that the belated reversal of credit is not going to absolve the appellant from payment of duty on MTRs as principal manufacturer, which had really fallen on the appellant by virtue of the procedure followed i.e. under Rule 57F(2), which according to the Assessing Officer is irreversible and appellant cannot escape from liability by reversing the duty on input tax credit claimed on purchase of components later. The first appellate authority as well as the Customs, Excise & Service Tax Appellate Tribunal confirmed the levy, against which the assessee-....

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....appellant marketed the products manufactured by engaging job workers and by virtue of the procedure prescribed under Rule 57F adopted by the appellant, appellant cannot turn back and say that duty is payable by the actual manufacturer which is the job worker. The appellant admittedly availed duty credit on the inputs and components purchased which are transferred to the job workers for manufacture and return of MTRs. Rule 57A clearly states as follows: "Rule 57A. Applicability:- (1) The provisions of this section shall apply to such finished excisable goods (hereinafter referred to as the "final products"), as the Central Government may, by notification in the Official Gazette, specify in this behalf, for the purpose of allowing credit o....