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2019 (10) TMI 956 - CESTAT MUMBAILiability of service tax or duty of excise - whether the appellant is manufacturer or job-worker - It has been the consistent contention of the appellant that the inputs for these products were being supplied by M/s Shakti Udyog and, therefore, assembled by using the facilities at the premises and that the appellant was a mere job-worker discharging appropriate liability under Finance Act, 1994 as provider of service - HELD THAT:- The privileges as job-worker, claimed by the appellant, are available only as procedural consequences of such assumption of responsibility. Hence, under law, notwithstanding the claims of the appellant of not being in possession of the premises, of not procuring any of the raw materials or inputs or not being in control of manufacturing facility, and of merely having been a provider of labour, their liability to duty is not erased. Transfer of materials from M/s Shakti Udyog has also not taken place in accordance with the procedure prescribed for such job-worker. In these circumstances, the appellant must necessarily be considered as the ‘manufacturer’ - The appellant is unable to bring on record any evidence to substantiate that the production of branded goods was only for a limited period. The liability to duty, therefore, devolves on the appellant. Imposition of penalty on Shri Pradeep Kainya - HELD THAT:- It is seen that he is the proprietor of the principal manufacturer which had merely utilized the facilities of M/s Electroclad to undertake manufacturing on their behalf. It has been held that the liability, as manufacturer, vests with M/s Electroclad and not upon the principal manufacturer to whom goods were supplied. Further, with the uncontested compliance with the tax liability under Finance Act, 1994, there is no ground to attribute any motives to Shri Pradeep Kainya - penalty set aside. Appeal allowed in part.
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