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TMI Blog2018 (8) TMI 608X X X X Extracts X X X X X X X X Extracts X X X X ..... -forms, jars and bottles falling under Central Excise Tariff and was availing benefit of SSI exemption under Notification No.9/2003 during the period 2001-02 to 2004-05. Besides manufacturing goods on their own account, they were also doing job work and clearing the goods so manufactured without payment of duty under Notification No.83/1994-CE dated 11.04.1994. When the records of the appellant were audited, it was found that the appellant had cleared the goods claiming the benefit of this notification. This notification provides for exemption to goods manufactured on job work subject to the condition that the supplier of raw material or the semi-finished goods gives an undertaking to the proper officer having jurisdiction over the factory ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ans, it is apparent that suppliers were sending pet pre-forms for conversion into pet jars which are by themselves fully manufactured goods and therefore, they cannot be further used by the supplier as raw-material in relation to manufacture of goods specified in the notification. It is further alleged that the assessees or the supplier of the raw material had, at any point of time, not declared about this activity to the department and therefore they have wilfully suppressed material facts and availed exemption under Notification No.83/1994-CE which they were not entitled to. Accordingly, Central Excise Duty of Rs. 91,59,613/- and Educational Cess of Rs. 1,68,141/- was demanded under the proviso to Sub- Section (1) of Sec.11A of Central Ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... traceable and concluded that suppliers do not exist and have been created only on paper and that the declarations are fabricated. 5. The Learned Counsel for the appellant argued as follows: (a) Responsibility of giving an undertaking under a notification rests on the supplier of raw materials. It is mentioned in para 6 of show cause notice that some details were missing in the undertaking and hence it cannot be concluded that supplier of raw material is manufacturer or trader, as this notification is applicable only for manufacturers. This shows that undertakings are given by the supplier of raw material and hence the question of denial of exemption does not arise. (b) The show cause notice sought to deny the benefit of notification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d down and are not traceable and 2 units at Visakhapatnam and 1 at Vijayawada did not exist. The job challans do not match the names of the suppliers and the basic details of transport and receipt and dispatch were also not produced by the appellant as recorded in para 19 of the Order-in-Original. Only fabricated photo copies of some declarations were produced to avail exemption under notification 83/1994-CE as recorded in para 21 of the Order-in-Original. Therefore the assessee is liable to pay duty, interest and penalty as they wilfully suppressed job worker clearances from the knowledge of the department. 8. We have considered the arguments on both sides. The short point to be decided is whether the assessee is eligible for exemption un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctional authorities of Central Excise having jurisdiction over the assessee that they will pay the relevant excise duty. Thus although the job worker is a manufacturer by virtue of the exemption notification r/w declaration made by the raw materials supplier, the burden of discharging excise duty shifts on to the raw material supplier. In the absence of any such declaration, the liability will continue to be with the assessee. The show cause notice alleges that the appellant has not produced the necessary declarations and when asked they have produced photo copies of some undertakings filed before the jurisdictional Asst. Commissioner or Dy. Commissioner having control over the job worker. While the other declarations were not addressed to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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