ASHISH CHEMICALS Vs. COMMISSIONER OF CENTRAL EXCISE, AHMEDABAD

JUDGEMENT

(1.) APPELLANT had manufactured and cleared the goods under Notification No. 214/86 for M/s. Meghmani Organics Ltd. During the period April, 2008 to March, 2009, it was noticed by the Revenue that appellant had availed cenvat credit on the inputs and capital goods. Proceedings were initiated to recover cenvat credit availed in respect of inputs utilized in the goods manufactured on job work basis to the extent of Rs. 1,24,663/ -. The demand was confirmed with interest and penalty equal to duty demanded was also imposed by the original adjudicating authority and the appeal filed against this order was rejected by the Commissioner (Appeals).

(2.) THE learned advocate on behalf of the appellants submitted that the issue is no longer res integra and the Larger Bench of the Tribunal in the case of Sterlite Industries India Pvt. Ltd. reported in 2005 (183) E.L.T. 353 (Tri. -LB.) has held that in such cases, cenvat credit is admissible. He also relies upon the decision of the Tribunal in the case of M/s. Vishal Pipes Ltd. v. C.C.E., Noida reported in 2011 (263) E.L.T. 81 (Tri. -De1). Learned DR submitted that in this case the learned Commissioner (Appeals) has taken note of the fact that Notification No. 214/86 by an amending Notification No. 20/2003 -C.E., dated 25 -3 -2003 has been amended to make it deemed to have been issued under Section 5A of Central Excise Act, 1944 and therefore the goods cleared on job work basis clearly fall under the definition of exempted goods now after 25 -3 -2003 and therefore the demand is sustainable.

(3.) EVEN though the matter has been listed only for considering waiver of pre -deposit and grant of stay, since the issue involved is already covered by precedent decision of the Larger Bench of the Tribunal, with the consent of both the sides, the appeal itself is taken up for decision after waiving requirement of pre -deposit and allowing the stay petition.