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2019 (11) TMI 953 - AT - Central ExciseValuation - job-work - benefit of N/N. 214/86-CE dated 25.03.1986 denied to the appellant on the ground that principal manufacturers have not complied with the conditions stipulated in the said notification inasmuch as the principal manufacturers have not filed required undertaking - HELD THAT:- There is no dispute that the appellant have manufactured Formaldehyde from Methanol supplied by Principal Manufacturers on job work basis. The job worked goods were returned back to the Principal Manufacturer - if it is found that job worked goods were used in the manufacture of final products by the Principal Manufacturer and the said final product is cleared on payment of duty, the appellant is clearly entitled for exemption N/N. 214/86-CE. As regards the undertaking required to be submitted, we find that in the said under taking also the Principal Manufacturer has to undertake that job worked goods will be used in the manufacture of final product which shall be cleared on payment of duty for the home consumption and/ or for the purpose of export. Therefore, on verification, if it is established that final products wherein the job worked goods i.e. Formaldehyde was used, has been cleared on payment of duty in the home consumption and/ or cleared for export without payment of duty under Bond then, appellant’s manufacture on job work basis is clearly covered by exemption N/N. 214/86-CE. Since the Adjudicating Authority has not verified the facts regarding nature of clearances of final product by the Principal Manufacturers that, for the home consumption on payment of duty and/ or export under Bond, the matter needs to be remanded for the limited purpose of this verification and all other issues raised by the appellant, are kept open - appeal allowed by way of remand.
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