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2016 (12) TMI 711 - CESTAT CHENNAIWhether the assessee is liable to pay duty on the goods manufactured by the job workers which were removed without payment of duty to their duty paid spare parts store? - Held that: - When the principal ground of the appellant is that job workers were entitled to the SSI benefit, appellant was deprived of the process of justice without consideration of such defence plea by the Authorities below. Appellant also categorically submitted that in absence of any undertaking given by it and such undertaking not borne by record, it cannot be presumed otherwise to hold against the appellant on the allegation that it had undertaken to bear the duty liability on the job worked goods. We did not find any material showing any undertaking by the appellant in the order of the ld. Adjudicating authority. Law is well settled that job worked goods shall be liable to duty in the hands of the job worker being manufacture unless otherwise exempt. But such liability is subject to consideration as to whether job worker was entitled to SSI benefit. Such specific plea being made by the appellant, authority should confine his re-adjudication to this limited issue for verification of record with the plea of the appellant made before him in the course of the proceeding. If he is satisfied with the pleading and that is borne by record as well as the material suggest that the appellant had not given any undertaking to bear duty liability on the goods manufactured by job worker, there shall be no duty liability on the appellant. As it appears that except interpretational issue there was no intention to cause evasion, there shall not be penalty. Appeal allowed by way of remand.
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