Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2018 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (12) TMI 1771 - AT - Central ExciseManufacturer of goods - manufacture and supply of Railway Wagon and Bogie components falling under Chapter 72, 73 and 86 of the Central Excise, Tariff Act, 1985 - whether the assessee is to be considered as the manufacturer of the goods supplied by them to Electricity Boards/Railway Wagon manufacturers? HELD THAT:- Admittedly, goods have been got manufactured by various job workers by payment of job charges and supply of raw materials. After receipt of goods from the job workers, the mandatory inspection by third party Agency has been carried out at the assessee’s premises before supply of the goods to the customers. Further the assesses have represented themselves as manufacturer of the goods before their customers. In these circumstances, the question for decision is whether the assessees are liable to be considered as manufacturer and liable to payment of Excise Duty - Revenue has justified the view that the assessee is the manufacturer with the argument that inspection is an important process without completion of which, the goods do not become marketable, since they cannot be supplied to the customers. The definition of the term “Manufacture” in section 2 (f) includes any process which is ancillary or incidental to the completion of the manufactured product. Revenue has sought to sustain the view that the assessee is the manufacturer with the submission that they have engaged the job workers, supplied the raw material and supervised the activities there and hence, are to be considered as the manufacturer. Even though, the idea is attractive, it does not merit acceptance. The transformation of the raw material into the final product has been done by the job worker at his premises and hence, the job worker alone is to be considered as the manufacturer and the liability to payment of Excise Duty would be upon him. The assessees cannot be considered as manufacturers of the goods supplied to Railway Wagon manufacturers as well as Electricity Boards. The respective job workers who have manufactured the goods will be liable to payment of Excise Duty. In this view, there are no infirmity in the order passed by the Commissioner dated 30/11/2012 and hence, it is sustained and all the revenue appeals are rejected. Appeal allowed - decided in favor of appellant.
|