2016 (11) TMI 1204

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....cate for the Appellants Shri. H.M. Dixit, Asstt. Commissioner(A.R.) for the Respondent Order The fact of the case is that the appellant has availed Cenvat credit on receipt of duty paid job work. Cenvat credit was denied on the ground that job worker should have carried out job work under Rule 4(5)(a) of Cenvat Credit Rules, 2004, hence was not supposed to pay the duty. The activity of jo....

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....e job worker has correctly paid the duty which appellant has availed as Cenvat. He submits that the dispute is related to payment of duty on the job work goods for which officer of the appellant have no jurisdiction to raise any question in respect of the activity carried out by the job worker. No show cause notice issued to the job worker regarding the payment of duty by them therefore the assess....

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.... I find that firstly the manufacture of Co2 Gas and filling it into cylinder is an activity of manufacture and duty is required to be paid. Secondly, even if it is accepted that activity of job worker is not amount to manufacture but job worker after receipt of duty paid material can avail Cenvat credit and pay the duty in terms of Rule 16 of Central Excise Rules, 2002 which is reproduced below: ....

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....licable on the date of removal and on the value determined under sub-section (2) of section 3 or section 4 or section 4A of the Act, as the case may be. [Explanation. - The amount paid under this sub-rule shall be allowed as CENVAT credit as if it was a duty paid by the manufacturer who removes the goods.] (3) If there is any difficulty in following the provisions of sub-rule (1) and sub-rul....