2023 (8) TMI 700

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.... Slag by paying excise duty at their end. The appellant takes Cenvat credit on such raw materials received from their principal, adds certain consumables and manufactures the finished product known as Silico Manganese. They pay excise duty on the finished goods and send back to M/s. Tata Steel Ltd.. The Department took the view that appellant as a job-worker of M/s. Tata Steel Ltd. is required to adopt Rule 8 of the Valuation Rules, 2000 for arriving at the assessable value. The appellants submitted that they adopted the correct value in arriving at the assessable value. They have also submitted copies of the certificate issued by the Chartered Accountant. Thereafter the Department issued show cause notice demanding the excise duty whereve....

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....ccount of time bar for the following reasons:- (a) The transactions of Cenvat Credit being taken and the value being adopted at the time of clearance have been properly reflected in the monthly ER-1 returns. Therefore, there cannot be any allegation of suppression on the part of the appellant. (b) The excise duty paid by the appellant is available as Cenvat Credit to M/s. Tata Steels Ltd., who were their principals. Since Rule 8 of the Valuation Rules, 2000 has been cited by the department, applicable for captive consumption, the Cenvat accrues only to the principal and this results in revenue neutral situation. 4. The Appellant relies on the following case laws:- (i) Commr. of C.Ex., Ahmedabad-II v. Reclamation Welding Ltd. [2014 (30....

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.... both sides and perused all the documents. 7. Admittedly the appellant is carrying job-work for M/s. Tata Steels Ltd.. For carrying this job-work, the principal and the service provider have adopted the procedure for dispatch of material from both the sides on principal to principal basis. M/s. Tata Steels Ltd. have supplied the inputs/raw materials on payment of Excise Euty and the same is being received at the end of the appellant who are taking Cenvat credit for the excise duty shown in such invoices. The Appellant also adds some consumables and materials at their end and if such consumables are received on payment of Excise Duty, they are taking the Cenvat credit on the same. In the present case, the Department has taken the view that ....

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....full Excise Duty on the job-worked product. Therefore, the appellant had nothing to gain by adopting any lower value at the time of clearance of the goods from his end to M/s Tata Steels Ltd.. M/s. Tata Steels Ltd. were using the job-worked goods as their raw material and paying excise duty on the finished goods. Therefore, they were eligible to take the full Cenvat credit of the duty paid by the appellant. In such circumstances, when the Cenvat credit paid by the appellant is available to their principals, the situation is that of revenue neutrality. Since there is a direct job-worker and principal relation between the appellant and M/s.Tata Steels Ltd., the Cenvat credit is to be taken as accruing to the related person himself. In the cas....