TaxTMI 
TaxTMI 
2016 (8) TMI 928
X X X X Extracts X X X X
X X X X Extracts X X X X
....ontends as under: (a). The appellant operated under the provisions of Rule 4(5)(a) of Cenvat Credit Rules inasmuch as the sister unit of the appellant based at Vishakhapatnam got it iron ore directly sent to the appellants unit under the provisions of said Cenvat Credit Rule and the appellant converted iron ore into iron ore concentrate and sent it back to the Vishakhapatnam Unit within a period of 180 days under proper challans showing receipt and dispatch of such goods. (b). In terms of Rule 4(5)(a) of the Cenvat Credit Rules when the raw material was sent on behalf of its Vishakhapatnam Unit for the job work the duty liability remained on Vishakhapatnam Unit and the job worker namely the appellant was not required to pay duty. (c).....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... benefit of Notification No. 214/86-CE nor did it claim it. (c). Rule 4(5)(a) is only with regard to the cenvat credit and cannot be extended to interpret the duty liability of job worker. 4. We have considered the contentions of both sides. 5. The short issue involved in this case is whether the appellant was acting as a job worker for its sister unit and doing the job work of converting Iron Ore into iron and ore concentrate slurry and returning the goods to the sister unit (Principal manufacturer) was required to pay duty thereon. In this regard, we note that the Commissioner vide order-in-original No. Commissioner/RPR/87/2007 dated 6.11.2007 in the appellants own case has held that the job work process undertaken b....
X X X X Extracts X X X X
X X X X Extracts X X X X
....o be removed as such or after they have been partially processed by the manufacturer of the final products to a place outside his factory under the cover of a challan specified in this behalf by the Central Board of Excise and Customs, for the purposes of test, repair, refining, re-conditioning or carrying out any other operation necessary for the manufacture of final products or for manufacture of intermediate products necessary for the manufacture of final products and return the same to his factory within a period of sixty days or such extended period as the Assistant Commissioner of Central Excise may allow in this behalf, for- (i) Further use in the manufacture of the final product; or (ii) Removing after payment of duty for home c....
X X X X Extracts X X X X
X X X X Extracts X X X X
....o the level of Supreme Court that the job worker was not required to pay duty. We have reproduced above the provisions of Rule 57(F)(4) Central Excise Rules, 1944 and the Provisions of Rule 4(5)(a) of the Cenvat Credit Rules, 2004 and have carefully perused the same. The language in both these Rule gives no scope to infer that if the job worker was not required to pay duty in terms of Rule 57(F)(4) it could be required to pay duty in terms of Rule 4(5)(a) because the conditions of Rule 57(F)(4) of Central Excise Rules, 1944 were stringent compared to the conditions of Rule 4(5)(a) of the Cenvat Credit Rules inasmuch as Rule 57(F)(4) categorically required the principal manufacturer to use the goods received from the job worker f....
X X X X Extracts X X X X
X X X X Extracts X X X X
....a) of Cenvat Credit Rules, 2002/2004, which returned after processing to principal manufacturer under said Challans without payment of excise duty - Demand raised as processed fabric not exempt under Notification No. 214/86-C.E. - HELD : Inputs received under Central Excise Challans and not under Notification No. 214/86-C.E. - As per C.B.E. & C. Circular No. 306/22/97-CX, dated 30-3-1997 for job work undertaken in terms of Rule 57F(4) ibid, duty liability to be discharged by principal manufacturer and not by job worker - No dispute that principal manufacturer cleared finished goods on payment of duty - Case of revenue neutral as any payment of duty by job worker will enable principal manufacturer to avail Cenvat credit - Order passed by adj....