TaxTMI 
TaxTMI 
2012 (12) TMI 883
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....d in or in relation to manufacture of their final products. The period of dispute in this case is from April, 2009 to Feb. 2010. During this period, the appellant in addition to manufacture of polyester chips for themselves, were also manufacturing this product on job work basis out of the raw materials received from principal manufacturer. The appellant received the main raw material-PTA (Pure Terephthalic Acid) and MEG (Mono Ethylene Glycol) from the their Noida Unit and after manufacture of Polyester Chips out of the PTA and MEG the same were returned to Noida Unit without payment of duty under Exemption Notification No.214/86-CE. There is no dispute that the principal manufacturer-Noida Unit was using the polyester chips for manufacture....
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....e cenvat credit demand for an amount of Rs.44,837/- in respect of inward transportation was dropped, the cenvat credit demand for the remaining amount of Rs.10,62,325/- (Rs.4,562,743/- + Rs.5,99,882/-) was confirmed alongwith interest and besides this, penalty of equal amount was also imposed on the appellant under Rule 15 of the Cenvat Credit Rules. On appeal to the Commissioner (Appeals) against the Addl. Commissioner's order, the above order of the Addl. Commissioner was upheld by the Commissioner (Appeals) vide order-in-appeal dated 17.1.2012. The Commissioner (Appeals) in this order held that the polyester chips cleared by the appellant to their principal manufacturer-Noida unit of the appellant at nil rate of duty under Notification N....
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....ured by him had been cleared without payment of duty to the principal manufacturer, that this judgement of the Tribunal was upheld by the Hon'ble Bombay High Court vide judgement reported in 2009 (244) ELT A-89 (Bom.), wherein the Hon'ble Bombay High Court held that the judgement of the Tribunal is based on the law laid down by the Apex Court in the case of Escorts Ltd. vs. CCE, Delhi reported in 2004 (171) ELT 145 (SC), that Hon'ble Supreme Court in the case of Escorts Ltd. (supra) has held that when Escorts Ltd. manufactured tractor parts on job work basis and cleared the same without payment of duty under Notification No.217/86 to other unit for use in the manufacture of tractors, which were cleared on payment of duty and when in the man....
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.... there was no provision analogous to Rule 57D of the Central Excise Rules in the Cenvat Credit Rules. He, therefore, pleaded that there is no infirmity in the impugned order and as such, there is no case for waiver from the requirement of pre-deposit. 6. We have considered the rival submissions and perused the records. 7. The dispute is in respect of cenvat credit availed on certain input services availed in or in relation to the manufacture of polyester chips on job work basis, which had been manufactured out of the raw materials received from the principal manufacturer-Noida Unit of the appellant company, and had been cleared at nil rate of duty by availing duty exemption under notification no.214/86-CE. Under the scheme of notification....