CENVAT CREDIT RULES, 2004

Rule 4(5)(a)

Cenvat credit - Conditions for allowing credit - Partially processed input sent to job worker having same management -

Assessee company received various inputs from their other unit described as Unit No. II against challans as per the provisions of rule 4(5)(a) of the Cenvat Credit Rules, 2004. After processing these inputs, they cleared the same against challans to Unit No. II, wherefrom ultimately the finished goods were cleared on payment of Central Excise duty. The duty was demanded from Unit No. 1 alleging that the Unit No. I and Unit No. II being under the same management, Unit No. I could not be treated as a job-worker of Unit No. II. Held: Assessee company had received certain inputs from their Unit No.II for further processing and after the inputs were processed, the same were removed from Unit No.I to Unit No.II. The movement of inputs of the processed goods were carried out under challans by following the procedure laid down under Rule 4(5)(a) of the Cenvat Credit Rules, 2004. Undisputedly, the excise duty involved on the finished goods, viz., transmission towers, etc., was discharged at their Unit No.II at the time of its clearance from the said unit to their respective customers. Thus, allegation of revenue could not be sustained.

Distinguished:CCE v. J.K. Udaipur Udyog Ltd. 2004 TaxPub(EX) 1925 (SC).

REFERRED : Vikram Cement v. CCE 2006 (194) ELT 3 (SC) : 2006 TaxPub(EX) 290 (SC), Upadhyay Valves Manufacturers (P) Ltd. v. CCE 2010 (257) ELT 449 ((Kol-Trib) : 2010 Taxpub(EX) 1668 (Kol-Trib)