TaxTMI 
TaxTMI 
2017 (10) TMI 742
X X X X Extracts X X X X
X X X X Extracts X X X X
....efly the facts of the case are that the respondents are manufacturers of various products of Bitumen, such as Bitumen Emulsion, Modified Bitumen, Cutback Bitumen etc. falling under Chapters 27 and 4C of the Central Excise Tariff Act, 1985 and avail the facility of CENVAT credit. On 15/12/2006, the officers of Central Excise visited the unit and studied the process of manufacture and verified the unit s records. They noticed that the assessee who was declaring an item called Modifier claimed as an intermediate product arising out of mixing of powered Crumbed Rubber with some chemicals is not physically visible or available. The officers ascertained that more than 90% of the Modifier contains crumbed rubber only. The assessee was showing modi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....las can not take credit based on their own invoices raised for the Modifier. Hence, the credits taken and utilised by the assessee on the item Modifier for further manufacture of Modified Bitumen for the period from January 2005 to December 2006 appeared irregular. Such irregular credit taken and utilised amounted to BED Rs. 24,07,491/- and Education cess (EC) of Rs. 48,150/- totally Rs. 24,55,641/-. On these allegations, show-cause notice was issued for recovery of irregular CENVAT credit of Rs. 24,55,641/- taken and utilised by the respondent on the product termed as modifier for the period January 2005 to December 2006 under the Section 11A(1) and 11B of the Central Excise Act, 1944 read with Rule 14 of CENVAT Credit Rules 2004 and the p....
X X X X Extracts X X X X
X X X X Extracts X X X X
....o product generated as such, then there is no liability on the part of the assessee to pay any duty on such product and there after avail the CENVAT credit of the same based on their own invoice. They can avail CENVAT credit only on the inputs which are mixed with Bitumen during job work operation. He further submitted that the finding of the Commissioner in para 27 wherein the learned Commissioner has held that the assessee is eligible to take credit of duty paid on modifier although the method of raising invoice is not correct and has to be changed, is incorrect and not sustainable. 5. None appeared on behalf of the respondent. In the Cross-objection, the respondent stated that they have manufactured and supplied modified Bitumen (refe....
X X X X Extracts X X X X
X X X X Extracts X X X X
....modifier is also taken as credit. CRMB has been cleared by the respondent after availing benefit of Notification No.108/95 as they have been cleared to the projects which have been funded by the World Bank and the said projects have been approved by the Government of India. 6. After hearing the learned AR and after perusal of grounds raised in the cross-objection, we find that the learned Commissioner(Appeals) has considered all the facts and the material on record and thereafter has dropped the proceedings initiated by the show-cause notice. Further we find that the respondent has manufactured the modifier by mixing together crumbed rubber, Gilsonite and Sulphur and this modifier is used in the manufacture of CRMB. We also find that the....