TaxTMI 
TaxTMI 
2023 (7) TMI 1115
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.... a view that the appellant was required to comply with the provisions of Rule 6(2) or 6(3) of the Cenvat Credit Rules, 2004. It was also noticed that they had not maintained separate accounts of receipt, consumption, inventory of inputs and input services meant for use in the manufacture of dutiable finished products manufactured on job work and their own products, that is the quantity of inputs meant for use in exempted goods namely the goods cleared without payment of duty after caring out job work process under Notification No. 214/86-CE and/ or Notification No. 22/2003-CE dated 31.03.2003 should have been maintained separately. It has been the contention of the department that appellant should have availed Cenvat credit only on the quantity of inputs or input service which were intended for use in the manufacture of the dutiable goods or in providing output services on which service tax is payable, as provided under Rule 6(2) of the Cenvat Credit Rules. On the basis of above notion, a show cause notice dated 30.01.2014 came to be issued where under following demand and penal provisions have been proposed to be invoked:- (i) Why the amount of Rs.2,29,73,314/-(Rupees Two Crore ....
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....Notification No. 62/1995-CE dated 16.03.1995. (iii) Whether extended period of limitation invoked in this case is correct, where all the procedures with regard to providing information/ intimation under Notification No. 214/86-CE dated 25.03.1986 have always been made before the department prior to the clearance of the goods for job work. 3.1 Learned Advocate contended that learned Commissioner (Appeals) has travelled beyond the scope of show cause notice and has passed the order in gross violation of principles of natural justice. It has been argued that the show cause notice only raises the legal issue whether reversal under Rule 6 of Cenvat Credit Rules, in respect of clearances made by the job-workers of the finished goods availing Cenvat credit on inputs used in such finished goods is correct or not, and whether the clearances have taken place under the provisions of Notification No. 22/2003-CE or Notification No. 214/86-CE and whether such goods cleared by following these two notifications can be considered as exempted goods. The learned Adjudicating Authority under Para 12.2 of the impugned order-in-original has held that clearances made by the appellant availing the bene....
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.... We have heard the learned Departmental Representative Shri Ajay Kumar Samota, Superintendent who has reiterated the findings in the impugned order-in-original. 5. Having heard both the sides, we first take the issue agitated by the learned Advocate that the impugned order-in-original has travelled beyond the scope that duty has been confirmed on the grounds which were never subject matter of the impugned show cause notice. Therefore, the impugned order-in-original has violated the principles of natural justice as the verification reports on the basis of which the demand has been confirmed, considering that the principal manufacturer has availed exemption notification while clearing the finished goods and therefore, the intermediate goods manufactured by the job worker would also hit by the same and therefore, the Cenvat credit need to be reversed by the appellant as per the provisions of Rule 6(3) of Cenvat Credit Rules, 2004. We find that the show cause notice has primarily asked for the reversal of Cenvat credit amounting to Rs. 2,29,73,314/- under Rule 6 (3) of Cenvat Credit Rules, 2004 on the inputs on which Cenvat credit has been availed by appellant and which have gone in t....
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.... Rules, 2004 and Section 11A of Central Excise Act, 1944, he has held as under:- 12.7 Further, I find that, the Noticee have also carried out job work of conversion of Brass Billets into Brass Rods in respect of M/s. Metal and Steel Factory, Ishapur, West Bengal (i.e., a unit of Indian Ordnance Factories under Ministry of Defence). These Brass Rods so converted were received back by M/s. Metal and Steel Factory and the same were further used for manufacturing of items required by defence which were exempted from Excise Duty under Notification No.62/1995- CE, dated 16.03.1995, the relevant portion thereof is as under: Exemption to specified goods- In exercise of the powers conferred by sub-section (1) of section SA of the Central Excises and Salt Act, 1944 (1 or 1944) read with sub-section (3) of section 3 of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 (58 of 1957), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby exempts, goods specified in column (2) of the Table hereto annexed, and falling under the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), subject to the conditions, if any, spe....