2014 (12) TMI 947

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....The appellant during December, 1993 got the racks and trolleys of steel fabricated on job work basis through M/s. Bonafide Industrial Work, Sausar in their factory out of the raw materials supplied by them. The racks are used for keeping finished products and trolleys are used by the appellants for moving the inputs from one section to another section of the factory. The department being of the view that the appellant have manufactured racks and trolleys and are liable to pay duty on the same which has not been paid, issued a show cause notice dated 20-9-1994 for recovery of duty amounting to Rs. 75,034/- and also for imposition of penalty. The show cause notice was adjudicated by the Dy. Commissioner vide order-in-original dated 31-8-1998 ....

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.... the appellant. He also cited the judgments of the Tribunal in the case of Tata Robin Frazer Ltd. v. Collector of Central Excise (para-8 of the judgment) reported in 1990 (46) E.L.T. 562 (Tribunal), Fusion Polymers v. CCE reported in 1991 (56) E.L.T. 665 (para-24) of the judgment and Delhi Paper Products v. CCE reported in 2000 (125) E.L.T. 661 (para-4) of the judgment, wherein it has been held that when the goods were fabricated by an independent fabricator on job work basis out of raw material supplied by the person for whom the goods were being fabricated, the fabricator fabricating the goods on job work basis is the manufacturer of the goods and not the supplier of the raw materials unless there was an allegation backed by evidence that....

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....ve considered the submission from both the sides and perused the records. 6. The undisputed facts are that the appellant got steel racks and trolleys manufactured in their factory through M/s. Bonafide Industrial Works on job work basis out of raw material supplied by them and that the appellant besides supplying the raw materials, had also provided to the job worker the drawings and design of the trolleys and racks to be fabricated. In this regard, we find that the work order dated 8-10-1993 placed by the appellant to M/s. Bonafide Industrial Works besides quoting rate of the job work on per kg. basis, also mentions the conditions, one of which is that all the workers employed by the job worker for this contract would be covered unde....