TMI Blog2019 (2) TMI 1094X X X X Extracts X X X X X X X X Extracts X X X X ..... er in the manufacture of goods which are cleared on payment of duty. In the present case, principal manufacturer i.e. M/s Divya Pharmacy though was getting the plastic containers manufactured on job work basis from the appellant but they were not clearing their final product with those plastic containers on payment of duty as they were availing the area based exemption as per N/N. 50/2003-CE dated 10.06.2003 - Once, there was no duty on the final goods cleared no question of any exemption available qua the goods manufactured in factory as a job work arises. Therefore, appellant is also not qualifying the remaining two conditions of the said notification. We are of the opinion that benefit of N/N. 214/86 is not available to the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt for the said job work under the cover of miscellaneous invoices as different from the regular invoices under Central Excise Rules for clearance of appellant s own manufactured goods qua the said job work expenses. The Department issued a SCN No. 01/04 dated 01.04.2013 proposing the recovery of central excise duty of ₹ 77,82,267/- alongwith the interest at the proportionate penalties. While adjudicating the said SCN, Commissioner vide the Order under challenge has confirmed the demand. Being aggrieved the appellant is before this Tribunal. 2. We have heard Ms. Anjali Manish, Ld. Advocate for the appellant and Mr. V.B. Jain, Ld. DR for the Department. 3. It is submitted by the appellant that the appellant is regularly dischargi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llant is having the benefit of area based exemption. Appeal is accordingly prayed to be dismissed. 5. After hearing both the parties and perusing the records, we observe and hold as follows: The original adjudicating authority vide the order under challenge has held that the appellant has manufactured plastic containers under job work challans and cleared them under miscellaneous challans only with an intent to evade the payment of duty as it was very much in the knowledge of the appellant that the unit of M/s Divya Pharmacy was in access free zone and is available an area based exemption. The question of exemption of Notification 214/86-CE is therefore not available to them. Thus, the only adjudication in the present Appeal is as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8th August, 1995, or (iii) for removal under bond for export, or (iv) by a manufacturer of dutiable and exempted final products, after discharging his obligation in respect of said goods under rule 6 of the CENVAT Credit Rules, 2002; or The bare perusal of provision makes it clear that exemption to the goods manufactured in the factory as a job work are subject to conditions as specified in the Notification as above i.e. the Notification exempts the job worker from payment of duty subject to fulfilment of the conditions enumerated therein. In the Notification as above, one of the conditions is that such goods should be used by the principal manufacturer in the manufacture of goods which are cleared on payment of duty. IN the present c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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