2016 (11) TMI 1087

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....machine was used exclusively for doing job work for others. Show cause notices were issued to M/s. Bharat Forge Ltd. for recovery of Cenvat Credit availed on the sinputs used for the manufacture of dies and for the purpose of job work on the ground that the job work activities were exempted under Notification No.214/86-CE dated 25/03/86. The show-cause notices were adjudicated and in four cases demand for recovery of Cenvat Credit was confirmed along with interest. Penalty was also imposed under Section 11AC of the Central Excise Act. In one case the Commissioner (Appeals) granted relief by setting aside the order of Additional Commissioner confirming the demand. Thus, in four cases M/s. Bharat Forge Ltd., is in appeal against the confirmat....

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....e through the rival submissions. I find that the Larger Bench of the Tribunal in the case of Sterlite Industries (I) Ltd. (supra) has observed as follows: 4. In only case of Escorts Ltd. v. CC Ex, Delhi [2003 (160) E.L.T. 623 (Tri-Del.)] while interpreting Rule 57C of the Central Excise Rules, the Tribunal rejected the appellants claim of Modvat credit of duty paid on the inputs used in the manufacture of the parts, which were cleared without payment of duty to, appellant's other unit under Chapter X procedure and utilised in the manufacture of tractor which were cleared on payment of duty by observing that since no duty was paid on the part at the time of clearance, Rule 57C will apply and no Modvat credit would be admissible. ....