YASHWANT PROCESS WORKS Vs. COMMISSIONER OF C. EX.

JUDGEMENT

(1.) Heard both sides. The appellants have been denied credit of input duty on the ground that the inputs were directly sent to the job workers. Shri Gajendra Jain, ld. Advocate appearing for the appellants states that the Rules do not prescribe the receipt of the goods directly by the job workers and in support of his contention he cites the Board's Circular No. 33/33/94 -CX. 8, dated 4 -5 -1994 wherein there is a reference to sending raw materials/semi -finished goods directly from the supplier in Annexure 'B' and at Sl. No. 5 of the proforma intimation at Annexure -I. He, further states that this circular has not been taken note of by the lower authorities.

(2.) In view of the fact that the rules do not specifically prohibit the receipt of raw material directly by the job workers and there is no dispute about debiting of the 10% of the required amount and return of the impugned goods after due processing by the job workers, I am of the view that the appellants are eligible for the input duty credit. Accordingly, the impugned orders passed by the lower authorities are set aside and appeal is allowed with consequential benefits to the appellants.