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1994 (9) TMI 66 - SC - Central ExciseWhether the benefit of Notification No. 119/75 dated April 30, 1975 can be claimed by the appellant? Held that:- All that Modipon does is to supply steel pipes. The appellant purchases guide rings and strengthening rings from the market. It fits these rings into those steel pipes by itself or gets them fitted in another unit. Thereafter, adopters are fitted on the sides of the cops and then the plastic sleeves are fitted on the cylinders of the cops. This is not a case where the rings and the adopters and sleeves are supplied by Modipon. It is not suggested that the value of rings, adopters and sleeves is very small vis-a-vis the value of steel pipes. The additions made by the appellant are not minor additions; they are of a substantial nature and of considerable value. Except the pipes, all other items which go into the manufacture of cops are either purchased or procured by the appellant himself and he manufactures the cops out of them. The work done by him cannot be characterised as a job-work. If all the requisite rings, adopters and sleeves had also been supplied by Modipon, it could probably have been said that the appellant's work is in the nature of job-work. But that is not the case here. The Tribunal was, therefore, right in holding that the appellant cannot avail of the benefit of the Notification. The appeal accordingly fails and is dismissed. Civil Appeal Nos. 1384-85 of 1987 - It does not appear that the respondent adds any of his own material while manufacturing the transmitters and components as job work, the High Court was right in extending the benefit of the Notification to the respondent. Civil Appeal No. 3464 of 1988 - Tribunal has not clearly dealt with the process of manufacture undertaken by the appellant. It appears that the customer entrusts lead ingots to the appellant who manufactures lead suboxide and litharge from them. Whether the appellant adds any of his own material or whether the said manufactured products are made wholly or substantially from the material supplied by the customer is not clear from the judgment of the Tribunal. Thus remit the matter to the Tribunal for decision afresh according. Civil Appeal Nos. 19-22 of 1980 - The judgment of the Gujarat High Court too the process employed by the respondent is not clearly set out - matters remitted to the High Court for ascertaining the relevant fact. Civil Appeal No. 3331 of 1984 - The notification cannot be forced to operate in conditions it is not qualified to operate. In the case before us now, we have the added factor that acetic anhydride by Sirsilk is not known to be the product of the acetic acid brought by the particular customer, because Sirsilk uses this process for its own production programmes as well. The acetic acid first gets mixed with other acetic acid or the finished anhydride gets mixed with anhydrides obtained from other acetic acid. There is no segregation and therefore no one can tell that the acetic anhydride was the result of this or that acetic acid. Denial accepted. Civil Appeal No. 3963 of 1990 - The judgment of the High Court does not set out the relevant facts nor the manufacturing process undertaken by the respondent-writ petitioner - the appeal is allowed and the matter remitted to the High Court for looking into the relevant facts. Civil Appeal No. 2867 of 1991 - The respondent receives high density polythene fabric from its customers and prepares bags out of it. He also prints a logo or some other matter on the said bags as per the specification of the customer. The High Court of Bombay at Nagpur held that, in the above circumstances, the work done by the respondent-writ petitioner was in the nature of job work. We see no error in the reasoning of the High Court.
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