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1 - 4 of 4 (0.19 seconds)C.C.E. vs Shanmugaraja Spinning Mills Pvt. Ltd. on 11 August, 1996
The ld. Counsel also relies on the ruling of Honourable Madras High Court in the case of CCE versus Singaravelar Spinning Mills Private Ltd. : 2009 (241) ELT 497 wherein capital goods were used for producing intermediate products, the question before the High Court was whether Tribunal was correct in allowing modvat credit of duty paid on capital goods/Spares by notification number 60/94 CE dated 21/10/94, comes into effect from 21/10/94 and credit was taken during the period April 94 to September 94 and whether Tribunal was correct in allowing modvat credit of duty paid on capital goods and spares, namely Carding and Combing machines producing products namely silver/Combed/cotton falling under chapter 52.02 of the schedule, which heading remained specifically excluded from the purview of eligible final products under erstwhile Rule 57Q as it stood during the material time. The Honourable High Court held that the final product product namely cotton yarn was cleared on payment of duty. Thus carded/combed cotton came into existence at and intermediate stage. The Tribunal rightly held that the goods in question were not marketable and relying on the circular dated 25/9/02 held that Cenvat credit should not be denied on the capital goods used in the manufacture of intermediate products exempt from payment of duty which are used Duly in the manufacture of finished goods which are chargeable to duty and held that modvat credit of duty paid on capital goods cannot be denied.
M/S.Escorts Limited vs Cce, Delhi on 7 July, 2011
The ld. Counsel also relies on the ruling of Honourable Supreme Court in the case of Escorts Ltd. Vs. CCE : 2004 (171) ELT 145 wherein under notification number No. 217/86CE, parts cleared from one factory of assessee to the other factory, where the assessee was availing/taking modvat credit in respect of duty paid on inputs used in the manufacture of parts and those parts were cleared to another factory of the same assessee, without payment of duty by virtue of notification number 217/86, and the parts were then used for manufacture of tractor which were cleared on payment of duty. Revenue had disputed that modvat credit was not admissible as the final goods that is parts were cleared without payment of duty. The Honourable Court have held that in cases where intermediate product comes into existence, even though no duty is paid on the intermediate product as it is exempted from the duty or is chargeable to nil rate of duty, credit will still be allowable so long as duty is paid on the final product. The Honourable Apex Court relied on its earlier decision in the case of M/s Hindustan Sanitaryware Industries, where is was held that so long as duty is paid on the final product, the mere fact that duty was not paid on the intermediate product would not disentitle the manufacturer from the benefit of notification number 217/86CE. Accordingly, he prays for dismissing the appeal of Revenue.
Commissioner Of Central Excise vs M/S Jainsons Wool Coombers Ltd on 7 February, 2011
6. The ld. Counsel for the respondent stated that the issue is no longer res Integra and the same stands settled by the ruling in the case of Commissioner of Central Excise Vs. Jainsons Wool Coombers Ltd.: 2011 (268) ELT 360 (P & H), wherein the question before Honourable High Court was whether Rule 6 of Cenvat Credit Rules does not debar a unit from taking credit of duty on the quantity of inputs used in manufacture of job worked goods cleared without payment of duty and whether the Tribunal was correct in allowing Cenvat credit by placing reliance on its earlier judgement in the case of Sterlite Industries Ltd. : 2005 (183) ELT 353 without taking into cognizance the provisions of Rule 2(d), 2 (f), 3 and 4(5)(a) of the Cenvat credit rules. The Honourable High Court held that the Tribunal rightly held that clearing of goods at intermediate stage was not at par with clearing of exempted goods. Under the circular of the Board (665/56/2002 CX dated 25/9/02) as well as the scheme of Act and the rules, Cenvat credit is permissible to a job worker and even to a manufacturer at intermediate stage of inputs likely, lubricants, soaps, chemicals, et cetera used in the manufacture of final products on which duty was admittedly paid. Object of Cenvat credit is to avoid cascading effect of duty.
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