2007 (8) TMI 133

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....ls No. 10 and 11/2006(T) - C.E. dated 15-2-2006 passed by the Commissioner of Customs & Central Excise (Appeals), Guntur. 2. There are actually two appellants M/s. Super Spinning Mills Ltd. and M/s. Standard General Finance Ltd. M/s. Super Spinning Mills Ltd. cleared Single Yarn to their job workers viz. M/s. Standard General Finance Ltd. for the purpose of undertaking the processes of doubling....

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....enue that the final product is exempted by way of Notification No. 6/2000-C.E. Therefore, no Modvat credit can be availed and such products cannot be cleared on payment of duty. It was also urged that the job worker cannot avail Modvat credit in order to clear the goods given by the original manufacturer on payment of duty after processing. Therefore, the availment of Modvat credit was irregular. ....

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....itional Notification. In the present case, the job worker did not opt to avail the said exemption. Therefore, the finished goods were cleared on payment of duty by availing the Modvat credit. The following case-law  were relied on :- (i) GTN Enterprises Ltd. v. CCE, Calicut - 2006 (200) E.L.T. 76 (Tri-Bang.) (para 6) (ii)  Everest Convertors v. CCE, Calcutta-II - 1995 (80) E.L.T. 9....

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....ds. The original authority has made an elaborate discussion and has held that only the principal manufacturer has to discharge the duty liability in terms of Rule 96(E). We do not find anything in Rule 96(E) which compels or which makes it obligatory on the part of the principal manufacturer to discharge the duty liability. As long as the duty liability on the double yarn, manufactured by the job ....