2019 (8) TMI 1169

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....ondent ORDER RAMESH NAIR The issue involved is whether the appellant are liable to pay 10% of the value of the goods in a case where furnace oil is used in the manufacture of final product on job work basis under Notification No. 214/86-CE dated 25.03.1986. 2. Shri S. Suriyanarayanan, Ld. Counsel appearing on behalf of the appellant at the outset submits that the issue is already decided in fa....

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....il which is used in the manufacture of job work goods under Notification No. 214/86-CE dated 25.03.1986. The lower authorities have denied credit on the ground that since the job work goods is exempted from payment of duty, credit in respect of furnace oil is not admissible. I find that in respect of goods manufactured under Notification No. 214/86-CE there is specific provision under Rule 3(1) of....

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..... From the above Rule, it can be seen that the credit is allowed in respect of inputs used in the manufacture of goods under Notification No. 214/86-CE despite the fact that job worker is not supposed to pay the duty when the goods are manufactured under Notification No. 214/86-CE. This is for the reason that goods manufactured under Notification No. 214/86-CE is not otherwise exempted as the noti....