TaxTMI 
TaxTMI 
2015 (8) TMI 308
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....fication and the demand raised against the assessee has been set aside. 2. The brief facts are that : M/s. Federal Mogul TPR (India) Ltd. (FMTPR) holders of Central Excise Registration Certificate is engaged in the manufacture of piston rings etc., falling under Chapter 84 of Central Excise Tariff, 1985. It is the case of the Department that on information gathered from the Intelligence during the period between April 2007 to January 2008, FMTPR had availed inadmissible CENVAT credit of service tax paid on the activity of chrome plating done by their sister concern on job work basis under cover of material movement challans, without reversing the CENVAT credit availed thereon. FMGIL had returned the goods after completion of process of ch....
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....common order dated 12.01.2012 allowed all the appeals setting aside the demand made by the authorities. This order passed by the CESTAT dated 12.01.2012 is impugned in these appeals by the Department. The questions of law raised in these appeals are as follows: "1. Whether the Tribunal is correct in allowing the appeal filed by the assessee without appreciating the fact that M/s. Federal Mogul Goetze India Ltd., the job worker, has irregularly availed CENVAT Credit and wrongly paid Central Excise Duty/Service Tax, so as to enable their sister concern i.e., M/s. Federal Mogul TPR India Ltd., to avail inadmissible credit thereby giving undue benefit for the company as a whole? 2. Whether the CESTAT has erred in holding that the obligation o....
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.... terms of Section 2(f) of the Central Excise Act, 1944 and it is an activity covered under the category of 'business auxiliary service' and liable for payment of service tax. However, in view of Notification No. 8/2005-ST, dated 01-03-2005, the job work which does not amount to manufacture was exempted from payment of service tax, provided the job worked goods are further used in the manufacture of final products on which appropriate duty of excise is discharged by the principal manufacturer, the FMGIL though entitled for availment of such exemption notification, without availing the same, wrongly paid service tax under the activity of chrome plating with an intention to pass on the undue benefit of CENVAT Credit to FMTPR and also t....
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.... i.e., the job worker, FMGIL to avail the benefit of the exemption notification. 8. After hearing the learned counsel for the parties and perusing the records, it is clear that the entire issue involved in this case revolves round the interpretation of the Notification No. 8 of 2005, dated 01-03-2005. The said notification reads as under: 'In exercise of the powers conferred by sub-section (1) of section 93 of the Finance Act, 1994 (32 of 1994) (hereinafter referred to as the Finance Act), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the taxable service of production of goods on behalf of the client referred in sub-clause (v) of clause (19) of section 65 of the said Fi....
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....such goods are produced using raw materials or semi finished goods supplied by the client i.e., the principal manufacturer and goods so produced are returned back to the said client for use in or in relation to the manufacture of other goods on which appropriate duty of excise is payable. 10. Thus, this notification is condition precedent. The applicability of this notification shall be subject to the condition stipulated therein i.e., the principal manufacturer discharging the liability of appropriate duty of excise on these manufactured goods. Any job worker who undertakes services of processing is not free to avail the benefit of the said notification unless the recipient of the services pays appropriate duty of excise on the goods retu....