Home Case Index All Cases Central Excise Central Excise + AT Central Excise - 2022 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (8) TMI 609 - AT - Central ExciseProceedings amounting to manufacture or not - activity of unloading of chemicals of Chapter 29 from the tankers and re-packing and labeled in small drums by the job workers - liability of duty on principal supplier or job-worker. If at all the activity carried out at the job worker’s end is amount to manufacture whether the appellant is liable to pay the duty on such activity? - HELD THAT:- If at all the activity amounts to manufacture the job worker is a manufacturer in the eyes of Central Excise Act, 1944 to hold a person as manufacturer. The ownership of goods is not relevant, therefore, in the present case even though the goods belongs to the appellant but the entire activities were carried out by the job worker. From the detailed finding of the Larger Bench in THERMAX BABCOCK AND WILCOX LTD., THERMAX LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, PUNE-I [2017 (12) TMI 266 - CESTAT MUMBAI], it is settled that irrespective of the ownership of goods whoever undertakes the manufacturing activity he has to pay the duty. Applying the ratio of the Larger Bench in the present case since, the job worker has carried out all the activities which as per the department amounts to manufacture, the job worker is alone to pay the excise duty, therefore, the duty demand raised against the appellant is not sustainable, hence, the same is liable to be set aside. Since, the issue that who is liable to pay the duty has been decided, the issue whether the activity per se is amount to manufacture or otherwise is not decided. The appellant in any case is not liable to pay the excise duty in the facts and circumstances of the present case - Appeal allowed - decided in favor of appellant.
|