Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2015 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (10) TMI 2139 - AT - Central ExciseDemand of duty on goods manufactured by the Job worker - Assessee received goods under Notification No.214/86 and not returned the same - Held that:- On perusal of the Notification No.214/86, it is seen that para 2 of the said notification clearly lays down that it shall be the responsibility of the supplier of goods to ensure that the goods are used in the manner specified in the notification. The liability in respect of the goods produced out of, such inputs would be of the recipient of the goods. Thus if only duty has to be demanded on material sent for job work it has to be demanded from the supplier. Similarly, if any duty has to be demanded on products manufactured out of these materials it has to be demanded from the recipient of the goods, i.e. the job-worker. To that extent it is clear that in terms of Notification No.214/86, the liability of payment of duty would fall within the suppler of the goods and not on the recipient. - Notification No.214/86 clearly determines the liability of the sender and that of the receiver of the goods. - show-cause notice itself issued wrongly to the recipient of the goods instead of the supplier of the goods. Learned AR further argued that since the appellant have paid the duty they have assumed the liability and therefore, they cannot escape the responsibility of paying interest and penalty. Reliance on the decision of the Hon ble High Court of Madras in the case of Alstom T&D India Ltd., (2015 (6) TMI 300 - MADRAS HIGH COURT) is misplaced in so far as in that case, the liability of the appellant themselves was no doubt. In this case the liability itself does not exist. In this case, since there was no liability to pay duty, the liability to pay interest and penalty cannot arise. - Decided in favour of assessee.
|