My client holds a "Manufacturer" registration under Central Excise for Adhesives and Sealants. They want to buy/ import steel coils and get them converted into steel tubes on job work basis. Can they avail the benefit of Notification 214/86 , even though they do not have the "manufacturer" registration for "steel tubes", since the Notification uses only the word "manufacturer"
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As the notification nimber 214/86, c.e is applicable only for the excisable goods which are subject to levy of central excise duty , you can avail this exemption notification when the new product / goods are covered under central excise/ or included in the central excise registration cerificate.
it is important to mention here that once a manufacturer pays duty on its exisiting excisable goods he cannot claim exemption on his new manufatured goods.
we should also examine wherher such activity amounts to manufacture or not before deciding the duty liability on the said new goods.
1. If your clinet buying f steel coil for converstion into steel tube they can not avail exemption under 214/86, because process on purchased good can not be treated as job work.
2. If steel coil received on behalf of any other manufacurer than your clinet may availe exemption under notification 214/86 in case duty to be paid by final manufactuer other wise your client may be treat as deemed manufacturer and they will pay excise duty on steel tube just because process which may be undertaken is subject to manufacture.
R K Rajwanshi
In our opinion you should opt Rule 10B of the Valuation Rules.