CCE Vs. HAPPY FORGING LTD.

JUDGEMENT

(1.) This is departmental appeal against the order of the Commissioner (Appeals) dated 18.01.2008, which upheld the order of the Original Authority dated 31.10.2006, which was also against the Department. In other words, the Department has come in appeal against the current findings of the Original Authority and the Commissioner (Appeals), which are against them.

(2.) Heard ld. Jt. CDR, who reiterated the grounds of appeal.

(3.) 1 I have carefully considered the submissions and perused the records. The show cause notice has been issued on the erroneous appreciation of law treating the clearance of goods processed on job work basis under Notification No. 214/86 -CE dated 25.03.86, as exempted goods. Notification No. 214 of 86 -CE only transfers the liability from the job worker to the supplier of materials to the job worker and does not exempt the goods. Further, the Original Authority has also held that Rule 6(2) of Cenvat Credit Rules, 2002 providing for exception will apply in respect of the furnace oil/R.F.O. with the following findings: