TaxTMI 
TaxTMI 
2018 (2) TMI 208
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.... undertake certain processes. The appellant availed cenvat credit on capital goods directly sent to the job worker on their behalf amounting to Rs. 93,04,021/-. Department took the view that in terms of Rule 3 (1) of Cenvat Credit Rules, 2004, the manufacturer of final product shall be allowed to take cenvat credit of duties of excise paid on any input or capital goods received in the factory of manufacture, including duties or tax or cess paid on any inputs or input services used in the manufacture of intermediate product by a job worker functioning under Notification No.214/86-CE. Accordingly, proceedings were initiated against the appellant which culminated in the impugned order dt. 31.12.2008 ordering recovery of the said amount of Rs. ....
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....nowledge of the department and that there was no suppression or misstatement of facts. Ld. Advocate also submits that they had taken the credit in respect of capital goods after their receipt at the job worker's end and the job work had been completed and the goods not received, however they had only taken the credit and reversed the credit immediately. They only took actual credit of the capital goods when they were returned by the job worker and received by them. The department has taken the date of re-credit as the 'relevant date' for the purpose of issue of SCN which is not correct. He submits that the date of first credit should have been taken, in which case notice would be beyond the period of limitation. In any case, he ....
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....uld also entitle them to take credit on the capital goods received by the job worker / sister unit. We are afraid that this contention is misconceived. 5. The permission accorded under Rule 4 (5) (a) or for that matter, the permission to operate under Notification No.214/86-CE is only to facilitate movement of capital goods to the job worker for manufacture of intermediate / final products. These permissions are attendant with certain conditions and procedures that are required to be followed, but in no way do they sanctify the availment of cenvat credit in respect of capital goods received directly at the job worker's end. In any case, no permission can go beyond the boundaries of the statute. We also find that the case laws cited by ....