TaxTMI 
TaxTMI 
2022 (5) TMI 564
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....ds captively. On this captive consumption of the Brass Casted Rods which are used for the manufacture of final product, the appellant claimed exemption under Notification No. 67/95-C.E., dated 16-3-1995, Notification 83/94-CE and 84/94 - CE both dated 11.04.1994. The appellants were issued show cause notice proposing demand of excise duty of Rs. 11,55,62,312 on intermediate goods viz. casted brass rods manufactured by them and manufactured on job work basis. The demand of duty was confirmed by the Commissioner vide the impugned order and penalty equivalent to the duty under Section 11AC was also imposed. In addition, personal penalty of Rs 5,00,000/- was also imposed on Shri Hiteh P. Dudhagra, Director, of the appellant Company. Therefore, the appellants are before us. 3. Shri P.D Rachchh, Learned Counsel for the appellant submits that in the present matter they have not availed the Cenvat Credit under Cenvat Credit Rules 2004, therefore they complied the provisions of / discharged obligation under Rule 6 of the CCR, 2004. Thus, eligible for exemption for intermediate goods viz. Brass Cast Rods manufactured in their factory and used captively for manufacture of parts of Agricult....
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.... argued that demand was barred by limitation as prior to impugned notice, premises was searched on 21.03.2006, the department has also issued SCN dated 21.06.2006. Appellant filed undertaking as provided under Notification No. 83/94-CE and 84/94 CE both dated 11.04.1994 and declaration under Notification No. 36/2001-CE (NT) dated 26.06.2011 as amended for each year of dispute. Therefore, entire activities of Appellant were well within the knowledge of department and it had not suppressed anything from department. Entire demand for the period 2006-07 to 2009-10 issued on 28.04.201 is badly time barred. He placed reliance on following decisions: • Nizam Sugar Factory Vs. Collector of Central Excise, A.P. - 2006 (197) ELT 465 (SC) • ECE Industries Ltd. Vs CCE, New Delhi - 2004 (164) ELT 236 (SC) • Gujrat Ambuja Exports Ltd. Vs Union of India - 2012 (26) STR 165 (Guj) 4. Shri T.G Rathod, Learned Additional Commissioner (AR) appearing for the Department, hassubmitted the written submission and countered the appellants' arguments. He supported the findings in the impugned order and submits that provisions of Notification No. 67/95 are n....
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....f 1944), read with sub-section (3) of section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957), (herein after referred to as the said Special Importance Act), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts - (i) capital goods as defined in rule 3 of the Cenvat Credit Rules, 2002 manufactured in a factory and used within the factory of production; (ii) goods specified in column (1) of the Table hereto annexed (hereinafter referred to as input) manufactured in a factory and used within the factory of production in or in relation to manufacture of final products specified in column (2) of the said Table; from the whole of the duties of excise leviable thereon which is specified in the Schedules to the Central Excise Tariff Act, 1985 (5 of 1986) or additional duty of excise leviable thereon, which is specified in the Schedule to the said Special Importance Act : Provided that nothing contained in this notification shall apply to inputs used in or in relation to the manufacture of final products which are exempt from the whole of the duty of excise o....
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.... (1) The Cenvat credit shall not be allowed on such quantity of inputs which is used in the manufacture of exempted goods, except in the circumstances mentioned in sub-rule (2). (2) Where a manufacturer avails of Cenvat credit in respect of any inputs, except inputs intended to be used as fuel, and manufactures such final products which are chargeable to duty as well as exempted goods, then, the manufacturer shall maintain separate accounts for receipt, consumption and inventory of inputs meant for use in the manufacture of dutiable final products and the quantity of inputs meant for use in the manufacture of exempted goods and take Cenvat credit only on that quantity of inputs which is intended for use in the manufacture of dutiable goods. (3).................. From the above Rule 6 it can be seen that as per sub-rule (1) of Rule 6, the assessee is not required to avail the Cenvat credit in respect of the inputs used in the manufacture of exempted goods. As per the fact of the present case it is undisputed fact that the appellant during the impugned period not registered with the Central Excise Department, hence, has not availed the Cenvat credit in respect....
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....e Job Work activity and cast duty liability on the principal manufacturer on whose behalf the job worker under takes manufacturing of the goods. It does not erase the duty liability just because the goods are manufactured on job work basis. The goods undergo duty liability at the hands of the principal manufacturer on behalf of whom the Job Worker manufacturers the goods or process the raw materials or semi-finished goods. 37.1 I find that the said party have cleared their raw materials or semi-finished goods to the job-worker and received intermediate goods viz., Brass Casted Rods manufactured by the Job-Worker without following the prescribed conditions , without preparing the job- work challans and without maintaining any records thereof. Substantial condition of the Notification No. 84/94-CE dated 11.04.94 cannot be said to have been fulfilled if removal of materials to the Job-worker and its return from the job-worker after carrying out necessary process is not under proper documents. 5.3 We find that, the Notification No. 84/1994-CE dated 11.04.1994 grants exemption to the excisable goods of the description specified in Annexure to the Notification No. 8/2003-CE d....
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....Brass Casted Rods, the duty liability would fall on the manufacturer who is a job worker in this case and not on the appellant. Since duty demand has been made on Brass Casted Rods and the appellant is not a manufacturer of the same, the demand is not sustainable and accordingly, the impugned order demanding duty from appellant is legally not correct. We find that the larger bench of Hon'ble CESTAT in the matter of M/s Thermax Babcock & Wilcox Ltd. Vs Commissioner of C.Ex. Pune -I, reported at 2018(364) ELT 945 (Tri. -LB) held that: 8. As per above discussion, we hold that the job worker M/s. Thermax being manufacturer of excisable goods is liable to pay duty on the intermediate goods manufactured by him on job work basis which supplied to their principal M/s. Thermax Babcock. The question referred to this larger bench is answered accordingly. Registry is directed to place the appeals before the referral bench for appropriate orders. In the case of Desh Rolling Mills v. CCE, Delhi - 2000 (122) E.L.T. 481 (Tri.), the Appellate Tribunal confirmed duty demand upon the jobworker as the job work activity was not undertaken in terms of Notification No. 214/86-C.E. The Tribuna....
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....nt is required to discharge duty liability on certain intermediate goods which come into existence in their factory premises which are not "specified goods" under Notification No. 8/2003-C.E., dated 1-3-2003 as amended by Notification No. 8/2006-C.E., dated 1-3-2006. It is observed from Sr. No. (xxiv) of annexure to Notification No. 8/2003-C.E., dated 1-3-2003 and Sr. No. (xxxii) to (xxiv) of annexure to Notification No. 8/2006-C.E., dated 1-3-2006 that certain categories of copper articles are not eligible to small scale exemption. The opening paragraph of the Notification Nos. 83/1994-C.E. and 84/1994-C.E. both dated 11-4-1994 grants exemption to the job worker with respect to specified goods of small-scale exemption notification, sent back to the raw material suppliers who are availing SSI exemption. Certain procedures have been prescribed by which the raw material suppliers have to give an undertaking that the specified goods will be returned back to their premises and such specified goods received from the job worker will be used in the factory of such suppliers in or in relation to the manufacture of specified goods which are exempted under small scale exemption notification.....