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2016 (2) TMI 250 - AT - Central ExciseDuty liability - Manufacturing activity or not - activity of cutting and welding of steel angles - galvanizing steel items - Job work - Held that:- Regarding the demand of duty from the appellant for galvanizing work done by the job worker, the original authority stated that certain processes like cutting welding were done before they are sent to galvanizing. This observation has not been supported by the original authority with source. Further, observation of the original authority that it is the duty of the appellant to follow the procedure for job work notification and to pay duty on final products is not supported by any legal provision. If the job work procedure is not followed then the duty liability is on the person who undertakes the manufacture activity. In the present case, it is the person who undertakes galvanization who is liable to duty, if any. As such, we find that the original authority is in error in his finding. In the statements of the proprietor of the appellant's firm various categories of the items and nature of process undertakes and nature of process undertaken on such items were given. It is necessary for the original authority to examine the processes carried out category wise and to give finding on such process resulted in production of totally a new identifiable and marketable product falling under specific classification in tariff. We find that the original authority has not followed these requirements to arrive at the conclusion of duty liability against the appellants. As such, we find that the impugned order is not sustainable and has to be set aside.
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