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2013 (12) TMI 508 - AT - Central ExciseDuty Liability u/s 11D of Central Excise Act 1944 - Processing of textile fabrics on job work basis Aid of power/steam on hot air stenter Held that:- The respondents are job worker and are processing the manmade fabrics for merchant manufacturers - the provisions of Section 11D of the Act are not applicable in the case as there is no element of sale Following Gini Silk Mills Ltd. vs. CCE [2006 (11) TMI 405 - CESTAT, MUMBAI] - Section 11D has to be given a wider meaning so as to include a merchant manufacturer who is the supplier of grey fabric to the processor and to whom the processor returns the processed fabrics, is not tenable for the reason that only in the case of a sale transaction there will be a buyer of goods, and the case of the department itself is that no sale was involved in the transaction between the grey fabric supplier (merchant manufacturer) and the processor. The provisions of Section 11D are inapplicable to units operating under Section 3A of the Central Excise Act, 1944, who are required to pay duty based on the capacity determined by the Commissioner of Central Excise, and not for every clearance effected - the provisions of Section 11D are not applicable to units operating under the compounded levy scheme, as they pay duty on the basis of production capacity/number of chambers of a stenter, and duty liability has nothing to do with the quantity of goods manufactured and cleared by them - For attracting the provisions of Section 11D of the Act there has to be sale - there is no evidence of sale and therefore, the provisions of Section 11D are not applicable no infirmity on the order Decided against assessee.
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