TMI Blog2015 (10) TMI 1673X X X X Extracts X X X X X X X X Extracts X X X X ..... the goods and liable to pay duty as per the provisions of Section 2(f) of the Central Excise Act, 1944. We are unable to accept such a finding of the adjudicating authority for the reason that there is no allegation in the show cause notice that the job workers are hired labourers. In any event, it is clearly coming out from the show cause notice that the appellant sent the material to the job wor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Clothing Company (i.e. the Assessee) had sent fabrics for stitching on job work basis to various job workers and have received back ready made garments from them. The job workers issued bills to the assessee and payments were made. It has been alleged that in terms of Rule 4(1) and (3) of the Central Excise Rules, 2002, the onus of payment of Central Excise duty falls on the person who sent the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reproduce below the relevant portion of Rule 4(1) and (3) of Central Excise Rules, 2002, issued by Notification No. 4/2002-CE (NT) dated 01.03.2002:- Rule 4. Duty payable on removal. - (1) Every person who produces or manufactures any excisable goods, or who stores such goods in a warehouse, shall pay the duty leviable on such goods in the manner provided in rule 8 or under any other law, an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... leviable on such goods, at such time and in such manner as may be specified under these rules, whether the payment of such duty be secured by bond or otherwise, as if such goods have been manufactured by such person; Provided that such person may authorise the job worker to pay the duty leviable on such goods on his behalf and the job worker so authorised undertakes to discharge all liabilit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vent, it is clearly coming out from the show cause notice that the appellant sent the material to the job workers, who issued the bills to the assessee. So, there is no material available that the job workers were the hired labourer of the assessee. 5. In view of the above discussion, the demand of duty alongwith interest can not be sustained. Accordingly, the demand of duty and interest is set ..... X X X X Extracts X X X X X X X X Extracts X X X X
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