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2015 (1) TMI 1037 - CESTAT BANGALOREManufacture of mineral water with the brand name of the appellants by the Job Worker - Who is liable to pay duty - Held that:- Observations of the learned Commissioner that the appellant has to be considered as a principal manufacturer just because the job-workers are not free to market the goods manufactured by them. We are also unable to agree with the conclusion that because they are not free to market the goods they are not independent entities. In this case, what is being manufactured is packaged mineral water and it is nobody's case that mineral water is manufactured out of raw-material supplied by the appellant. The major input for manufacture of drinking water is not supplied by the appellant. Further even if the job-workers are manufacturing the goods, legally only for the purpose of valuation, the question as to whether a person is a job-worker or not comes into consideration. In such a case, only for valuation purpose, the prices at which the goods are cleared by the principal manufacturer are taken into account. We are not aware of any precedent decision nor was any decision placed before us to support the view that if bottles are supplied or raw-materials are supplied and if the job-worker is not free to market the goods manufactured by him, the principal manufacturer or the supplier of raw-material has to be considered as the manufacturer. To decide as to who is the manufacturer, the question that has to be answered is who converted the raw-material/input into a new product with a distinct name, character and use. In this case undoubtedly it is the job-worker. - appellant has made out a case for complete waiver. Accordingly the requirement of pre-deposit of balance dues is waived and stay against recovery is granted for a period of 180 days from the date of this order - Stay granted.
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