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2023 (5) TMI 931 - AT - Central ExciseJob work - SSI Exemption - Benefit of N/N. 214/86-CE dated 25.03.1986 as amended by Notification No. 83/94-CE dated 11.04.1994 denied - neither the appellant nor the supplier of raw material has followed the conditions laid down in the said notification - Revenue was of the view that the appellant has wrongly availed the benefit of Notification 8/2003 as amended, on the goods so manufactured on job work basis as well as availed the benefit of Cenvat credit of the duty paid on inputs and cleared the same without payment of central excise duty. HELD THAT:- The issue involved in the present case is no longer res integra. The Tribunal has in the case of VANDANA DYEING PVT LTD VERSUS COMMISSIONER OF CENTRAL EXCISE [2014 (8) TMI 441 - CESTAT MUMBAI] has held that notwithstanding the fact that the process fabrics are not included in Notification 214/86, the job-worker is not liable to discharge excise duty liability and any liability thereon is required to be discharged by the supplier of the raw materials. Rule 4(6) of the Cenvat Credit Rules makes it abundantly clear that, if the goods are required to be cleared from the job-worker’s premises instead of being returned to the supplier, then the Commissioner can direct clearance of the goods on payment of duty from job-worker’s premises. This would also indicate that the liability to discharge duty under the provisions of Rule 4(5)(a) is on the supplier of the goods and not on the processor of the goods. In this view of the matter, we find that the impugned order is not sustainable in law and merits to be set aside. In the case of M/S. INAR PROFILES PVT. LTD. (FORMERLY KNOWN AS VISAKHA STEEL ALLIEDS) VERSUS COMMISSIONER OF CENTRAL EXCISE, SERVICE TAX AND CUSTOMS - VISAKHAPATNAM-II [2014 (4) TMI 297 - CESTAT BANGALORE] it was held that the appellant is eligible for the benefit of Notification in respect of their supplies made to the SSI units. As regards contractors and traders, etc., the learned counsel drew our attention to the table submitted by them in reply to the show-cause notice wherein they had shown that if the clearances to third category of traders alone is taken in all the years under consideration by us, the total clearances made by the assessee would be less than the limit for total exemption prescribed by the SSI exemption Notification. The decisions relied in the impugned order are clearly distinguishable and do not come the way of holding that the benefit of Notification No. 214/86 dated 25.03.1986 as amended by Notification No. 83/94, 84/94 both dated 11.04.1994 cannot be extended in the present case in respect of the job worker. In above cases the demand has been made on the principal manufacturer i.e. the raw material supplier for whom the job work was carried out. Notification casts an obligation on the supplier of the raw material and not on the job worker to file such a declaration. The only reason for denial of the benefit of this notification as referred above is that the principal manufacturer i.e. the raw material supplier has not filed any declaration as required. The appellant in the present case could not have been held responsible for the failure of the supplier of raw material to give the undertaking as ascribed to the proper officer having jurisdiction over the factory of the job worker/supplier. Appeal allowed.
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