BALKRISHNA INDUSTRIES LTD. Vs. COMMISSIONER OF C. EX. & S.T.
LAWS(CE)-2015-3-46
CUSTOMS EXCISE AND GOLD(CONTROL) APPELLATE TRIBUNAL
Decided on March 24,2015

Balkrishna Industries Ltd. Appellant
VERSUS
Commissioner of C. Ex. And S.T. Respondents

JUDGEMENT

ASHOK JINDAL,MEMBER (J) - (1.)THE appellant is in appeal against the impugned order for denial of Cenvat Credit on the service tax paid by them to the job workers. The facts of the case are that the appellant is manufacturer of excisable goods. They have sent certain goods to the job workers for job work. The activity of the job worker was meant to manufacture, but the job worker was clearing the goods to the appellant without payment of duty but issuing service tax invoices to the appellant for payment of service tax on job charges. Appellant has taken Cenvat Credit on the service tax paid on job charges. Revenue is of the view that the activity of job workers amounts to manufacture. Therefore, appellant is not entitled to take Cenvat credit on the service tax paid to the job worker. Therefore, show cause notice was issued to the appellant to deny the Cenvat credit and consequently impugned order is passed by confirming demand on duty along with interest and imposition of penalty.
Heard the parties. Considered the submissions. It is not in dispute that job worker has issued invoices for job charges on which the service tax has been paid by the job worker. It is also not in dispute that appellant has not received the job work goods. Therefore, appellant is entitled to take Cenvat credit on service tax paid by the job workers on job charges. The issue whether the activity of job worker amounts to the manufacture or not, the Revenue has not taken this issue with the job worker. Therefore, the appellant cannot be held liable for the activity of the job worker. As the appellant has suffered service tax on job charges, they are entitled to take Cenvat credit. Therefore, impugned order deserves no merits and hence it is set aside. Appeal is allowed with consequential relief if any.

(Dictated and pronounced in the open Court)

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