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2016 (2) TMI 780 - AT - Central ExciseManufacture - whether the activity of modification of moulds and dies amount to manufacture therefore it is liable to excise duty ? - applicability of provision of Rule 4(5)(a) - exemption under Notification No. 214/86-CE dated 25/3/1986 - Held that:- Rule permits to send the capital goods to job worker for further processing, testing, repair, re-conditioning or manufacture of intermediate goods necessary for manufacturing of final product or any other purpose. In view of this clear provisions, the appellant has correctly followed the procedure laid down under Rule 4(5)(a). Even if it presumed that the activity is manufacture it will remain exempted under Notification No. 214/86-CE dated 25/3/1986 according to which if any goods manufactured on job work basis on material supplied by the principal manufacturer and said manufactured goods is used in the factory of the principal manufacturer, the said goods are exempted from the payment of whole of duty. In the present case the moulds supplied by Bhoisar unit to the appellant and appellant after carried out the activity returned back the moulds to the Bhoisar unit where it was used for the manufacture of other final product i.e. plastic parts on which excise duty is undisputedly paid. In this position even if by any stretch of imagination the activity held to be manufacture though not accepted by us, the moulds will remain exempted under the notification No. 214/86-CE. Facts in the judgments cited by the Ld. A.R. are not relevant to the facts of the present case therefore not help the case of the Revenue. In view of the above discussion, we are of the considered view, firstly the activity is not amount to manufacture, secondly the movement and activity of modification is squarely covered by Rule 4(5)(a) of CCR, 2002 therefore the demand is illegal and incorrect - Decided in favour of assessee
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