2003 (3) TMI 183

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....State Fertilizers & Chemicals, Surat, is delivered directly to their job workers situated in Surat with a view to avoid unnecessary transportation of the yarn from purchaser to their factory at Mordi and again back to the premises of job workers at Surat; that the job workers converted Nylon Filament yarn into knitted Fabric which on receipt by the Appellants is laminated and is moved on payment of duty; that the Cenvat credit taken by them on the Nylon Filament yarn has been disallowed to them on the ground that the job workers were not operating under Notification No. 214/86-C.E., which is the condition contemplated under Rule 57AB(1) of the Central Excise Rules, 1944 and that the job workers could not avail the benefit contained in Notif....

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....y of the manufacture of the final product for being used in the manufacture of the final product; that since this condition is satisfied, Cenvat credit cannot be disallowed to them; that it has been clarified by the Board in 1986 that the inputs can be directly sent to the job workers' premises without first coming into the factory of the manufacturer; that applying the said Circular, the Larger Bench of the Tribunal in Maruti Udyog Ltd. v. CCE, New Delhi, 2000 (118) E.L.T. 43 (T-LB) has held that the inputs under Rule 57F(2) can be directly sent to the job worker without first bringing into the factory of the manufacturer of the final product. Reliance has also been placed on the decision in Bright Steel Mac Fabrics v. CCE, Ahmedabad, 1994....