2016 (8) TMI 698

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....Rule 15 of CENVAT Credit Rules, 2004 read with Section 11AC of the Central Excise Act, 1944. 2.  The facts of the case are that during the months of September and October, 2007, the appellant received iron ore on behalf of its sister unit located in Visakhapatnam, converted the same into concentrate and returned the same to its sister unit without payment of duty though iron ore was received directly from National Mining Development Corporation (NMDC).  The Commissioner in his adjudication order held that there was no evidence that the appellant was operating under job work procedure and as the concentrate was cleared at nil rate of duty, the impugned credit was not admissible and as a consequence passed the above order. 3.&....

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....ble to the job worker operating under Notification No.214/86-CE, dated 25.03.1986.  In addition, she drew our attention to the adjudication order No.Commissioner/RPR/57/2007, dated 07.11.2007, passed by Commissioner, Raipur, wherein the process of converting ore into concentrate has been held to be amounting to manufacture and that no appeal has been filed against the said order of the Commissioner. 4.  Ld. Departmental Representative, on the other hand, submits that there was no evidence that the appellant followed the prescribed procedure of job worker and therefore could not qualify to be called job worker and resultantly, the judgements cited by the appellant would be of no help to the appellant.  He also added that th....

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....ne by the assessee. 16.    We find on fact that in this case also, the Tribunal was correct in holding that wiring harness was removed without payment of duty under job work procedure to the principal manufacturer and that semi-finished goods removed by the job worker from its unit to the principal, without payment of duty, would not come within the scope of expression "exempted final product" used in Rule 57R(1) equivalent to Rule 6(4) of the Cenvat Credit Rules, 2004.  The Tribunal has rightly held that availment of Modvat credit on capital goods to be job work is in order.  For the reasons aforesaid, the substantial question of law is answered in favour of the assessee and against the Revenue." 6.&nbs....