2013 (6) TMI 580

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....ther processing. In some cases, the appellant directly sends the inputs to the job-worker from the factory of the input manufacturer, or from the port of entry (in cases of imported goods) which is permissible under the MODVAT Scheme. The present appeal deals with such cases where inputs were sent for job-work under Rule 57 F(3) of Central Excise Rules directly to the job-worker's factory by the suppliers of the inputs. The appellant submits that in cases where the inputs are required to be sent directly to the job-worker, the appellant takes credit of the quantity of the inputs in its RG23A Part I account, which is statutory record to be maintained by the appellant. The appellant issues the challans prescribed under Rule 57 F(3). However, ....

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....acturer. Similarly, the stipulation of nine months period under Rule 57G(5) read with Rule 57J applies to only those cases where inputs are sent to job-worker to manufacture intermediate products which are then received by the final product manufacturer. According to him, Rule 57G is not applicable where duty paid inputs are not received in the factory of the appellant but are sent directly to the job-worker. He submits that the appellant has taken the quantitative credit of the inputs in RG23 Part I within six months from the date of issue of the duty paying documents. The appellant could not have taken MODVAT credit without receiving the inputs from the job-worker and after processing, some inputs had been sent directly to the job-worker.....

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....fore, the time limit of nine months prescribed under Rule 57G(5) is clearly applicable and, therefore, the appellant is not eligible for the credit. He also submits that no doubt, Circular issued by the Board says that credit cannot be taken unless inputs are received from the job-worker but it cannot be said that the Circular overrules the provisions of Rule 57G(5) of the Rules. 5. We have considered the submissions made by both sides. In this case, as soon as the assessee received the duty paying documents in respect of inputs which were sent directly to the job-worker, the assessee took the credit of goods in RG23 Part I and accounted for them. However, as envisaged under Rule 57G, the assessee did not take credit of duty paid since cre....