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2016 (6) TMI 272 - CESTAT ALLAHABAD

2016 (6) TMI 272 - CESTAT ALLAHABAD - TMI - Demand of duty from the Job worker who is the actual manufacturer - Extended period of limitation - suppression of facts - Held that:- Principal Manufacturer (s) have not been issued any SCN by the Revenue and the job worker, who is the appellant assessee, has only been issued the SCN (Show-Cause Notice). The job worker, who is the appellant assessee has been treated by the Revenue as the manufacturer by the Central Excise Authorities, with whom the Pr .....

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N, i.e. 07.10.2008 ; Central Excise duty liability will be for the clearances made by the appellant assessee for the said period of preceding one year.

The appellant has already been given the benefit of refund of service tax paid by the lower adjudicating authority, which can be adjusted against their liability of payment of Central Excise duty for the one year period being confirmed by this order. We also take note that the appellant made a predeposit of ₹ 15.00 lakhs, which c .....

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d inform the appellant within three months of receipt of this order.

As no kind of concealment of the facts on the part of the appellant and all along Revenue was in full knowledge of the facts and even the Audit team of the Department visited the appellants premises and advised them to pay service tax instead of Central Excise duty and the appellant had paid the said service tax then. Consequently, there is no justification for imposition of any penalty on the appellant under the la .....

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al excise, where one of the conditions of job work under Notification No. 214/86-CE dated 25.03.1986, have not been fulfilled. Here, one of the conditions of the Notification 214/86-CE (Supra) is that the responsibility of discharging liability of Central Excise duty on the final product, is to be honoured by the Principal Manufacturer, as per the Declaration filed with the Central Excise Authority ; this has not been complied with. 3. The appellant was issued SCN by Central Excise treating them .....

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de his Order dated 26.02.2010, ordered for adjustment of eligible amount of Cenvat credit against the total amount of duty confirmed and reduced the penalty to equal to the differential amount of duty after adjustment of the eligible amount of Cenvat credit against total confirmed amount of duty. 3.2 The appellant is now before this Tribunal contesting the order of the lower appellate authority. 4. The appellant represented by Shri Nagnath Mathdevru, mainly argues that they are only job workers .....

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d to pay Central Excise duty on the said goods. 4.1 The appellant assessee also mentions that Audit was conducted in their factory during 01.11.2006 to 07.11.2006 and the Audit Team of the Department advised them to pay service tax on job charges collected from the Principal Manufacturer (s) under the category of Business Auxiliary Service; they paid service tax as advised by the Audit Party of the Department. 4.2 The appellant also states that they have already made a predeposit of ₹ 15.0 .....

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er Notification 214/86-CE (Supra), it is not their responsibility to pay Central Excise duty on the goods cleared on job work by them. The Principal Manufacturer (s) have filed the declaration to the effect that : 1. (a) …………………. (b) …………………. (c) …………………. (d) …………………. (e) ………&hellip .....

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knowledge that the appellant assessee was doing only the job work under Notification No.214/86-CE (Supra) and payment of duty of Central Excise on the goods cleared by them on job work was not their responsibility. Further, when the Audit was conducted in their premises, the appellant assessee immediately made the payment of service tax on job work charges as advised by the Audit Party of the Department. Therefore, no liability of Central Excise duty can be fixed on the appellant asseessee. 4.4 .....

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the goods cleared by the job worker has not been honoured, it is the responsibility of the job worker, who has done the manufacturing job to pay the duty of Central Excise. The job worker cannot argue that it is not their responsibility to pay duty when actually, it is they, who have done the job work for the Principal Manufacturer and when there has been a declaration filed with the Central Excise (though by the Principal Manufacturer), that the responsibility of discharging liability of payme .....

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rk basis, the duty of Central Excise was not paid either by the job worker or by the Principal Manufacturer (s), whereas the Notification No.214/86-CE lays down that the Central Excise duty is liable to be paid on the final product to be cleared by the Principal Manufacturer ; the said final product would cover definitely the goods, which have been cleared by the job worker to the Principal Manufacturer (s). 6.1 It is also a fact that the Principal Manufacturer (s) have not been issued any SCN b .....

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evenue authority. Therefore, when there is not any suppression of facts by the appellant, any demand of Central Excise duty can be made for normal period of one year only. In other words, liability of payment of duty would be for the preceding one year from the date of SCN, i.e. 07.10.2008 ; Central Excise duty liability will be for the clearances made by the appellant assessee for the said period of preceding one year. 6.2 The appellant has already been given the benefit of refund of service ta .....

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