2016 (12) TMI 984

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....facture of various excisable goods. They are also using the services of job workers. The BHEL procured raw materials viz. copper rods and bare wires and availed credit of excise duty on such raw materials. These were supplied to various job workers under the cover of central excise challan for conversion into intermediate products such as bare copper conductors, Mica taped conductors in terms of Rule 3 (1) of Cenvat Credit Rules, 2001 read with Notification No.214/86-CE dated 25.3.1986. 2. The issue involved in the present appeals is that BHEL have not received back the inputs supplied to job workers fully. It is the case of the department that certain quantity of inputs viz. continuous cast copper rods, on which cenvat credit has been ava....

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....ses was not Virgin Continuous Cast Copper Rods. No test has been conducted, neither the goods were examined technically before arriving at the conclusion that these are inputs themselves. 4. Ld. AR reiterated the findings in the impugned order. He submitted that in terms of Cenvat Credit Rules, the inputs are to be used for the intended purpose. In the present case, the credit availed for copper rods sent to the job worker were not received back in full. The credit on copper rods retained by the job worker cannot be allowed at the principal manufacturer s end. 5. We have heard both the sides and perused the appeal records. 6. The admitted facts of the case are that the BHEL are sending CC copper rods to the job worker for further manufac....