9911796707
TMI Blog2012 (10) TMI 583X X X X Extracts X X X X X X X X Extracts X X X X ..... record, the appellants proprietary firm was engaged in banding of single piece soap cake into a multi pack on behalf of M/s. Hindustan Unilever Ltd., who were the manufacturers of said soaps. The said activity of banding of unit pack of soap into multi piece packs of two, three or four was being done by the appellants as job worker and was being undertaken in the godown of M/s. Hindustan Unilever Ltd. located at Barotiwala. It may be mentioned that the factory of M/s. Hindustan Unilever Ltd. is also located at Barotiwala and the soaps manufactured by them were cleared without payment of duty by enjoying the area based exemption in terms of Notification No. 50/2003-C.E., dated 10-6-03. The movement of the soap cake/bars from the factory of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tment and were paying service tax on the activities; that the activity of banding of multi piece soaps in the godown of M/s. Hindustan Unilever Ltd. can not amount to manufacture; that the said activity was being undertaken by them as a job work in terms of provisions of Rule 4(5)(a) of Central Excise Rules (sic) read with Notification No. 214/86; that in any case and in view of the matter, the said activity undertaken by them at Barotiwala, they are entitled to exemption in terms of notification No. 50/2003-C.E., dated 10-6-03; that the major part of the demand in question is hit by bar of limitation. 4. As against the above argument, learned SDR has reiterated the reasoning adopted by the Commissioner in his impugned order. 5.&emsp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ished goods can be made out of such inputs. It thus appears that the noticee is not entitled to the benefit of Notification No. 50/2003-C.E., dated 10-6-2003." 6. As is seen from the above, the benefit of said notification is being denied on the sole ground that the appellant in their declaration so filed has not given the information about the inputs being used by them. Though, the fact that the declaration has been filed by the appellants, is also being disputed by the learned SDR submitting that the same was filed only after the case was made out against the appellants. Even taking the said fact to be correct, we find that the denial of benefit of notification, which grants exemption to all the manufacturing units located in that a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... service provider, he cannot be held to be a manufacturer liable to pay excise duty in which case and he cannot be expected to file a declaration. When once the appellant has satisfied the eligibility criteria of the notification, i.e. the location of the activity being in the area covered by the notification, the same has to be considered lightly and mere fact of non-filing of declaration should not lead to denial of grant of benefit of notification. The entire proposition and purpose of notification has to be kept in mind and the adoption of any other interpretation leading to anomaly and absurdity is required to be avoided. 8. For arriving at the prima facie, finding of the appellant being entitled to the benefit of notification, w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to pay the duty of excise inspite of being located at Barotiwala, whereas all other manufacturing units in that area were not paying duty of excise on account of availability of area based exemption under Notification No. 50/2003. On this ground itself, we are of the view that appellant is prima facie, entitled to the exemption and earns his stay petition. 10. Apart from it, the counsel for Appellants submits that the total remuneration paid by M/s. Hindustan Unilever Ltd. to the appellant for packing of soap/bar during the relevant period was around Rs. 58 lakhs. It is not financially possible for the appellant to deposit any part of the duty. 11. In view of the above, we dispense with the condition of pre- deposit of duty and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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