TaxTMI 
TaxTMI 
2022 (12) TMI 770
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....on of Rule 16B of the Central Excise Rules, 2002 as held by the Ld.Adjudicating Authority vide Order-in-Original dated 06.02.2017. 2.1 Briefly stated the facts of the case are that M/s Durgapur Steel Plant (DSP) is the manufacturer of Wheels & Axles. They were having facility to carry out machining of Wheels & Axles within their factory premises. However, they were also removing the goods for machining to other job workers. Tender was allowed for this purpose and M/s Mohata Coal Company Pvt. Ltd.(the Appellant herein) qualified for the Tender. M/s DSP obtained the approval from the Commissioner of Central Excise for getting the job work of machining through the appellant and accordingly, had given de....
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....was clearing the goods under Annexure III Challan and after receiving the returned goods, the same was supplied to the DSP. 2.2 On 02.06.2016, the Officers of the Department visited the premises of M/s Mohata Coal Company Pvt. Ltd. and found shortages of stock of Wheels & Axles. M/s Mohata Coal Company Pvt. Ltd. disclosed the fact that they had sent the said goods to their hired premises i.e. at the premises of M/s Vardhaman Products for undertaking the machining since M/s Vardhaman Products was having the facility of machining of Wheels & Axles. The goods were detained and subsequently seized. The seized goods were subsequently released to M/s DSP. The Department was of the view that sendi....
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....ob worker i.e. M/s Vardhaman Products, which amount to contravention of Rule 26B of the Central Excise Rules, 2002. 2.6 M/s Mohata Coal Company Pvt. Ltd., denied the said allegation made in the show cause notice and contended that they were undertaking the job work of DSP in their hired premises i.e. at the premises of M/s Vardhaman Products. Proper documentation of the goods were maintained and after receiving the goods, the same were returned to DSP, which has been stated by Shri S.R.Das, Manager of M/s Mohata Coal Company Pvt. Ltd. in his statement. There was no break of chain of manufacturing process in the system of job work. 2.7 The Ld.Adjudicating Authority imposed penalty of Rs.1....
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....ed to DSP for undertaking the job work through M/s Mohata Coal Company Pvt. Ltd. and sending the goods under Challan II and DSP had also given declaration to the Department for paying the duty on receiving the machined goods at the time of clearance. M/s Mohata Coal Company Pvt. Ltd., undisputedly, undertook the job work in their own premises and as well as in their hired premises and removing the goods to the hired premises against Challan III and receiving the machined goods and returning the same to M/s DSP. The Ld.Advocate also submitted that there is no break of chain in the process of undertaking job work and there was no evasion of duty. Merely because intimation was not given to the ....
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....urposes The Commissioner of Central Excise may by special order and subject to conditions as may be specified by the [Principal Commissioner of Central Excise or Commissioner of Central Excise, as the case may be] permit a manufacturer to remove excisable goods which are in the nature of semi-finished goods, for carrying out certain manufacturing processes, to some other premises and to bring back such goods to his factory, without payment of duty, or to some other registered premises and allow these goods to be removed on payment of duty or without payment of duty for export from such other registered premises. Rule 4(5) (a) of Cenvat Credit Rules, 2004 The Cenvat Credit on inputs sha....
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.... them without payment of duty. In the overall facts and circumstances of the case, the explanation given by the appellant that since there were constraints in completing shift work of machining at their own premises and the additional premise was hired, has to be accepted. As such, the benefit of doubt is required to be extended to the appellants. 7. It is also to be borne in mind that Rule 25 starts with the word "Subject to the provisions of Section 11AC............". Section 11AC of the Central Excise Act deals with penalty for short levy or non-levy of duty in certain cases. It says that where any duty of excise has not been levied or paid or has been short levied or short paid or erroneousl....