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2014 (12) TMI 316 - AT - Central ExciseJob work - exemption Notification No. 214/86-CX, dated 25-3-1986 - supplier have not given an undertaking to the Assistant Commissioner of Central Excise having jurisdiction over the factory of the job worker as required in terms of the said notification - Held that:- Out of the five processes carried out by the Appellants, four processes are outside the purview of manufacture. In other words, none of these four processes amount to manufacture and therefore the question of charging duty on the goods which only suffered these processes does not arise. This fact is so obvious that quoting any judgment on this aspect will be totally redundant and unnecessary. Regarding the process of machining of pinions, while such machining may result in the manufacture depending on the manner and extent thereof, neither the show cause notice nor the adjudication order provides any basis to infer that it actually amounted to manufacture. Even if this process is presumed to be amounting to manufacture, the demand in respect of such goods would only be to the extent of ₹ 13,12,559/- as against ₹ 74,68,635/- confirmed by the impugned order-in-original. Benefit of the said exemption cannot be denied merely because the supplier of the raw material had not submitted an undertaking as per the said Notification particularly when there has been proper accountal of the goods. As may be seen from the show cause notice as well as from the order-in-original, there is no allegation of any deficiency in the accountal of the goods and the supplier in this case is a Public Sector Undertaking/Government company - Decided in favour of assessee.
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