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2021 (1) TMI 503 - AT - Central ExciseSSE Exemption - Clubbing of clearance - use of brand name of others - Job work - the case of the department is that the electrodes manufactured by M/S Orion Wire Manufacturing Company bear the brand name of the appellant’s company - inclusion of such welding electrodes have to be included in the aggregate clearances of the appellant for the purpose of N/N. 8/2003 –CE - HELD THAT:- The appellant is the owner of the brand name “ Sun Arc”. They are getting electrodes manufactured by the M/s Orion Wire Manufacturing Company on job work basis by supplying materials to them. The electrodes manufactured by the job worker are cleared from the job worker premises directly. Raw materials for the manufacture of the electrodes are supplied by the appellant. The duty on the electrodes is paid by the job worker on the price at which the goods are sold by the appellant to the buyers. The Value Added Tax is paid by the appellant. Retail invoices are also issued by the appellant in respect of this clearance from the Job premises. The notification prescribes that for the purpose of claiming exemption of this notification aggregate value of clearances of all excisable good for home consumption by the manufacturer from one or more factories or from a factory by one or more manufacturer does not exceed Rs. Four hundred Lakhs in the preceding financial years. For the purpose of calculating the aggregate value, the value of clearances bearing brand name or trade name of another person, which are ineligible for the brand of this exemption, are not to be included in the aggregate value. The notification further prescribed that where the specified goods manufactured by the manufacturer bear the brand name or trade name, whether registered or not, of another manufacturer or trader, such specified goods shall not, merely by reasons of the fact to be deemed to have been manufactured by such other manufacturer or trader. The appellant cannot be held to be manufacturer of goods and the job worker is the manufacturer in the facts of this case. The liability to pay duty arises at the end of the job worker and not at the end of the appellant although appellant is the supplier of the raw materials - in the facts of this case none of the provisions of notification 8/2003-CE are attracted which can enable revenue to include the value of clearances of goods manufactured by the job worker in the aggregate value of the clearances of the appellant. Thus, there is no substance in the argument of the revenue to hold that appellant are the manufacturer and the benefit of the Notification 8/2003-CE can be denied by including the value of clearances of goods manufactured by the job worker in the aggregate clearances of the appellant - appeal allowed - decided in favor of appellant.
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