TMI Blog1991 (8) TMI 216X X X X Extracts X X X X X X X X Extracts X X X X ..... The facts of the case, in brief, relating to this issue are that the appellant is a sole proprietor of M/s. Vidyuth Engineering Company and also a partner in M/s. Trishul Enterprises and M/s. Gayathri Equipments, carrying on business of supplying steel furniture to the Health Department of Government of Karnataka. Initially it was charged that all the three concerns have manufactured steel furniture and parts thereof and supplied to the Department and got manufactured through other small scale units, viz., M/s. Manchu Industries, M/s. Kripal Industries, M/s. Balamurugan Steel Furniture Works, and M/s. Karnataka Small Industries out of raw materials supplied by these three concerns. After considering the defence and in view of the finding of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the same commodity, the order is not sustainable as both the parties cannot be considered to be the manufacturers of the very commodity. He said that the four units are small scale Industries which are situated in distinct places owned by different persons having their own establishments. Since they are independent contractors and mere supply of raw materials, by the appellant and got it manufactured on payment of job charges will not make supplier of raw material as manufacturer as it was held by the Tribunal in similar cases. He said that the view of the Tribunal in the case of Kerala State Electricity Board v. Collector of Central Excise [1990 (47) E.L.T. 62] was affirmed by the Supreme Court as reported in Court Room Highlights in Pag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e and parts of steel furniture manufactured by them were from the raw materials supplied by M/s. Vidyuth Engineering Company and that they have returned the goods to M/s. Vidyuth Engineering Company only under their delivery challans. He said since the units worked as hired labourers on job work basis the definition of manufacturer is comprehensive enough to include the appellant in its scope relying upon the decisions of the Supreme Court in the case of Shree Agency [AIR 1972 SC 780 = 1977 (1) E.L.T. (J 168) (S.C.)] and Bajrang Gopilal Gajabi [1986 (25) E.L.T. 609 (S.C.) = 1986 (10) ECC 160 SC]. 6. We have carefully considered the arguments advanced on both sides and perused the records including citations. On going through the case law ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al basis and the units are not faked or dummy. Since all the four units are independent and have distinct identity having different management, having no control or supervision upon the other, they cannot be said to be the employees or Agents of the appellant. To hold that they have manufactured on behalf of the appellant the Department must prove that the job workers were not manufacturers on their own account and that such arrangement was entered into between the assessee and the job workers to evade payment of duty. We do not find such evidence and Department did not establish that any or all the job workers who supplied the goods to the assessee after the process of manufacturing were not manufacturers on their own account and that they ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellants were functioning as printers even before the contract with ITC was entered into which establishes that the appellants are functioning independently of ITC, the relationship between the two being only of raw material supplier and manufacturer of the final product, each dealing with the other as principal to principal. Except to the extent that the printing of cigarette slides for ITC was to be done by the appellants to the specifications and printing details laid down by the ITC, with a right of rejection in the ITC for sub-standard material, M/s. ITC has no right of control and supervision over day to day work of the appellants. The supply of the board, ink and slide bromides, as well as the first set of cutting and creasing rol ..... X X X X Extracts X X X X X X X X Extracts X X X X
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