R.M. POLYPACK PVT. LTD. Vs. CCE

JUDGEMENT

(1.) THIS appeal has been filed against Order -in -Appeal No. 15/CE/Alld/2006 dt.23.2.06 passed by the Commissioner of Customs and Central Excise (Appeals). Allahabad.

(2.) LD . Advocate who appears for the appellant stated that the demand in this case relates to the Cenvat credit availed on the inputs by the job worker in respect of the goods manufactured on job work basis and returned to the principal manufacturer. The job worker apart from receiving the raw -materials from the principal manufacturer obtains on his own certain inputs which he uses for the manufacture of goods on his own account and also on account of the principal manufacturer. According to the revenue, the job worker clears the said goods to the principal manufacturer without payment of duty and therefore, he would not be entitled to take any cenvat credit at all. Ld. Advocate argued that the facts of this case are identical to the case of Sterlite Industries (I) Ltd. v. CCE, Pune wherein Larger Bench has ruled that the job worker who received goods from manufacturer under Rule 57F of erstwhile Central Excise Rules, 1944 is entitled to take credit of duty in respect of other inputs received directly and used by him in manufacture of said goods on job work basis. The reasoning of the Tribunal is that the impugned goods are neither exempted nor subject to Nil rate of duty. Hence, the provisions of Rule 57C would not be attracted in such cases.

(3.) LD . Departmental Representative took me to the impugned order and reiterated the contentions of the revenue.