TaxTMI 
TaxTMI 
2019 (2) TMI 852
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....y are engaged in the manufacture of Dyes and Chemicals and they also undertake job work activities for others and availed Notification No. 214/86-CE. The raw materials supplied were under Rule 4(5)(a) of Cenvat Credit Rules, 2004. Ld. Counsel pointed out that Revenue is seeking to invoke Rule 6 of Cenvat Credit Rules, 2004 for manufacturing of intermediate product undertaken by them and in respect of which they have claimed exemption notification 214/86-CE. Ld. Counsel has relied on the decision of this tribunal in the case of D.M. Brass Extrusion and others- Order No. A/11274-11287/2018 dated 28.06.2018. 3. Ld. AR relied on the impugned order. He vehemently argued that the activity of job work undertaken by the appellant is specifically....
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....ara 8 of notification No. 22/2003-Central Excise, published in the Gazette of India, part II, Section (i), vide number G.S.R.265(E), dated, the 31st March, 2003] paid on - (i) any input or capital goods received in the factory of manufacture of final product or premises of the provider of output service on or after the 10th day of September, 2004; and (ii) any input service received by the manufacturer of final product or by the provider of output services on or after the 10th day of September, 2004, including the said duties, or tax, or cess paid on any input or input service, as the case may be, used in the manufacture of intermediate products, by a job-worker availing the benefit of exemption specified in the notification of the Governme....
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....credit for payment of duty on his final products at the time of clearance. In such a situation, there can be no objection or dispute by the revenue as regards the admissibility of the credit on the inputs received directly by the job worker and utilised in his factory. The only effect of the above procedure adopted by the principal manufacturer and the job worker would be additional paper work. It is basically to avoid such a situation the procedure under Rule 57F(3) has been enacted. As rightly observed by the earlier decision's the mechanical application of Rule 57C which destroys the basic benefit intended to be extended to the assessee should be avoided. If the interpretation adopted by the revenue is upheld, the benefit otherwise inten....
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....ame as attributed to the notification issued by the Central Government. Similarly, the chargeable to nil rate of duty would refer to the tariff rate being nil and the goods cleared in terms of provision of Rule 199BB would not be covered by the said expression inasmuch as the same are not chargeable to nil rate. In the present case, we find the job worker could have cleared the goods on payment of duty and manufacturer could have claimed credit of the same. It is only under the special procedure laid down in terms of the Rule 57F(3) that the duty does not get paid at the job worker's end at the time of clearance of the goods, but ultimately gets paid at the manufacturer's end. In these circumstances, we are in agreement with the decision re....
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....product an intermediate product may also come into existence. Thus in cases where intermediate product may also come into existence. Thus in cases where intermediate product comes into existence, even though no duty has been chargeable to Nil rate of duty, credit would still be allowed so long as duty is paid on the final product. 9. In cases of manufacturers like the Appellants the final product is the tractor. The intermediate product would be parts which are manufactured for being used in the tractor. In such a case the parts would not be the final product. Thus Rule 57C would have no application. The mere fact that the parts are cleared from one factory of the Appellants to another factory of the Appellants would not disentitle....