TMI Blog2015 (11) TMI 93X X X X Extracts X X X X X X X X Extracts X X X X ..... ned in Notification No. 38/2003. - this position is accepted even by the Department which can be discerned from Circular No. 737/53/2003-CX dated 19.08.2003. Though certain doubts for carrying out the obligation under Standards of Weights and Measures Act, 1976 were clarified by the said Circular, incidentally it touched upon this very process that is undertaken by the assessees herein and remarked that such process would be covered by Notification No. 38/2003 and would be fully exempt from payment of excise duty. - benefit of exemption notification is rightly extended by the Tribunal to the respondents-assessees - Decided against Revenue. - Civil Appeal No. (S). 4763-4765/2007 - - - Dated:- 28-10-2015 - A. K. Sikri And Rohinton Fali Nariman, JJ. For the Appellant : Mr. Yashank Adhyaru, Sr. Adv. Ms. Binu Tamta, Adv. Mr. Rajiv Singh, Adv. Mr. Pankaj Pandey, Adv. Ms. Nisha Bagchi, Adv. Ms. Pooja Sharma, Adv. Mr. B. Krishna Prasad, Adv For the Respondent : Mr. Anand Sukumar, Adv. Mr. S. Sukumaran, Adv. Mr. Bhupesh Kumar Pathak, Adv. Mr. Avinash Kankani, Adv. Ms. Meera Mathur,Adv. Mr. V. Lakshmikumaran, Adv. Mr. M. P. Devanath,Adv. Mr. T.D. Satish, Adv. Ms. L. Charanaya, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... egarding usage; (2) repacking from bulk packs to retail packs ; (3) alteration; or (4) any other process to make the product marketable. Explanation - For the purposes of this notification, brand name or trade name means a brand name or a trade name, whether registered or not, that is to say, a name or a mark, such as symbol, monogram, label, signature or invented word or writing which is used in relation to such specified goods for the purpose of indicating, or so as to indicate a connection in the course of trade between such specified goods and some person using such name or mark with or without any indication of the identity of that person. NIL - A bare reading of the aforesaid Notification makes it clear that the benefit thereof is given to those assessees when, at their hands, article of apparel or clothing accessories is subjected to any one or more of the processes, which are mentioned herein. However, any of such process as mentioned herein is to be carried out by the assessee subsequent to purchase of the article of apparel or clothing accessories in question. It furthe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... redit and manufacture garments. They clear the garments in bulk on payment of excise duty valuing the goods under Section 4 on the value of raw material + job charges. These garments are sent back to the warehouse of the appellant. On receipt of the duty paid garments in bulk into their warehouse, the appellant carries out price tagging, stickering, washing instructions, tagging and retail packing. The aforesaid processes undertaken by all these three assessees fall within the processes that are mentioned in the Notification and there is no dispute about it. The only question is as to whether such process was undertaken by these assessees after the purchase of material. The submission of the Department in this behalf is that since it is the assessees who had assigned the work, that is fabrication of the apparel etc. to the job workers with the supply of material as well, and the job workers after undertaking the job had supplied the said material back to the assessees, this does not amount to purchase. We may mention at this stage that though the Tribunal has undertaken a detailed discussion on this aspect holding that this would amount to purchase within the meaning of Sect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... information is required relating to the price at which the said manufacturer is selling the said goods and the person so authorized agrees to discharge all the liabilities under the said Act and the rules made thereunder. The price at which he is selling the goods must be the value of the grey-cloth or fabric plus the value of the job work done plus the manufacturing profit and the manufacturing expenses but not any other subsequent profit or expenses. It is necessary to include the processor's expenses, costs and charges plus profit, but it is not necessary to include the trader's profits who gets the fabrics processed, because those would be post-manufacturing profits. The aforesaid clarification makes it clear that for the purpose of arriving at the value of the job at the hands of job workers, factory gate is treated as deemed factory gate as if the processed fabric was sold by the assessee. It cannot be disputed that the fact situation in these cases is identical where the job workers had paid the excise duty at the time of supply of these processed fabric to the respondent assessees. Once that could be treated as sale, the necessary corollary is that so far as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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