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2014 (6) TMI 233 - AT - Central ExciseDemand of cess - Manufacture of cloth - Appellants contends that they cannot be solely made liable as they are only job worker and it is the supplier of cloth who is liable to discharge such liability - Held that:- Appellants themselves admit that they hold Central Excise Registration for processing of man-made fabrics being independent processors and that they undertake the job work of finishing and dyeing of man-made fabrics and accordingly, they are doing job work and collect charges for processing on job charge basis. It has also been admitted by the Appellants themselves in para 3 of their Memorandum of Appeal that grey fabrics is received by the Appellants from various traders considered as deemed manufacturer in terms of Central Excise Act and Rules made thereunder for processing on job charge basis. The processed fabrics is returned to the said deemed manufacturer on payment of duty on the declared value of grey fabrics after adding processing charges as per the settled law. So far as the exemption under the proviso to sub-section (1) of Section 5A is concerned, the same is available to handloom and powerloom industries. The Appellants, who are manufacturing finished goods and not grey fabrics, i.e. the raw material, being not handloom or powerloom industries, cannot derive advantage of exemption on the basis of the raw material manufactured by other manufacturers. Thus, the Appellants are manufacturers of textiles in the aforestated facts and circumstances of the case and being so, they are subject to levy of cess in terms of the aforestated scheme of Law. - Decided against assessee.
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