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2014 (12) TMI 947 - AT - Central ExciseDuty liability to be discharged by the Job worker or Principle supplier (the appellant) - manufacture of steel racks and trolleys - Imposition of penalty under Rule 173Q - Held that:- Work order dated 8-10-1993 placed by the appellant to M/s. Bonafide Industrial Works besides quoting rate of the job work on per kg. basis, also mentions the conditions, one of which is that all the workers employed by the job worker for this contract would be covered under ESI and PF Scheme as per Labour Laws in force. Thus, in respect of the workers, employed by the job worker, it is the job worker who is responsible for providing the benefits under ESI and PF Scheme to the workers employed by him. It is also not disputed that M/s. Bonafide Industrial Works were doing similar job work for other clients. There is no evidence on record to indicate that M/s. Bonafide Industrial Works is a dummy unit floated by the appellant or is an agent of the appellant. When the transactions between the appellant and the job worker M/s. Bonafide Industrial Works are on principal to principal basis in the sense that both are independent entities and the job worker cannot be said to be a hired labour, working under the control of the Appellant, it is the job worker who has to be treated as manufacturer and not the appellant and, therefore, there would not be any duty liability on the appellant. Just because the raw materials and drawings and designs of the racks and trolleys to be fabricated were supplied by them, the appellant would not become the manufacturer. - Decided in favour of assessee.
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