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TMI Blog2019 (3) TMI 101X X X X Extracts X X X X X X X X Extracts X X X X ..... is as under: "RULE Inserted by M.F. & C.A. (D.R.) Notification No.24/2003-C.E. (N.T.), dated 25-03-2003 [12B. Job work in textiles and textile articles. - (1) Notwithstanding any thing contained in these rules, every person (not being an export-oriented unit or a unit located in special economic zone) who gets Substituted by M.F. & C.A. (D.R.) Notification No.27/2003-C.E. (N.T.), dated 1-4-2003 [yarns or fabrics falling under Chapter 50, 51, 52, 53, 54, 55, 58 or 60, readymade garments falling under Chapter 61 or 62 or made up textile articles falling under Chapter 63 of First Schedule to the Tariff Act] produced or manufactured on his account, on job work (herein after referred to as "the said person") shall obtain registration, maintain accounts, pay duty leviable on such goods and comply with all the relevant provisions of these rules, as if he is an assessee : Provided that the job worker may, at his option, agree to obtain registration, maintain accounts, pay the duty leviable on such goods, prepare the invoice and comply with the other provisions of these rules. In such a case the provisions of these rules shall not apply to the said person. The job worker, may, at his ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... factory, the exemption shall apply to the said aggregate value of clearances for home consumption and not separately for each manufacturer; (iii) the aggregate value of clearances for home consumption of specified goods, by the said manufacturer from one or more factories, or from a factory by one or more manufacturers, does not exceed twenty five lakh rupees in a financial year : Provided that in the financial year 2003-2004, the exemption shall apply only if the aggregate value of clearances of specified goods, by a manufacturer from one or more factories, or from a factory by one or more manufacturers, does not exceed twenty five lakh rupees during the period beginning from the 30th day of April, 2003: Provided further that in any financial year, if the aggregate value of clearances for home consumption of specified goods exceeds twenty five lakh rupees, or as the case may be, in the financial year 2003-2004, if the aggregate value of clearances for home consumption of specified goods during the period beginning from the 30th day of April, 2003 exceeds twenty five lakh rupees, the said manufacture shall pay the amount of duty as payable, on the said first clearances of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ured from job worker 'X'. In addition, X also clears grey fabrics manufactured by him as independent weaver. His clearance as independent weaver is Rs. 15 lakhs. Thereafter, he undertakes job work for A, B and C in a sequential manner. The value of clearances for A is, say, Rs. 5 lakhs, that for B is, 7 lakhs and for C is, Rs. 7 lakhs. For clearances made as independent weaver and on job work for 'A', there is no duty as the total clearance till then is below Rs. 25 lakhs. The first clearances of Rs. 5 lakhs for 'B' are also exempted. Thus, till then, 'B' need not follow Rule 12B procedure. However, the balance Rs. 2 lakhs clearances for 'B' become dutiable, as the total clearances of 'X' have now crossed the limit of Rs. 25 lakhs. Thus, now 'B' has to take registration and pay duty on clearances of Rs. 2 lakhs. As for 'C' his entire clearances of Rs. 7 lakhs are dutiable and he has to follow Rule 12B procedure for his entire clearances. It may be mentioned that in case the clearances value for 'C' increases beyond Rs. 8 lakhs, the total clearance value of 'X' exceeds Rs. 35 lakhs eligibility limit. Consequently, the entire clearance of 'X' would become dutiable and duty demand wou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be taken. Thus in terms of clause A(e) of Board Circular duty would be payable and trader would have to be registered and pay the duty. So also all past clearances become dutiable and the trader/traders/ weavers, would be required to discharge the duty on earlier clearances." Confirming the demand as raised in the Show Cause Notices, the Appellate Authority also imposed penalty of Rs. 10,000/-. 10. The Appellants being aggrieved, filed Central Excise Appeal No.E/370/2008-DB before the Tribunal. The Tribunal found no infirmity in the order of the Appellate Authority and dismissed said Appeal on 06.02.2018. It was held, "In the instant case, appellant's job worker M/s Dinesh Weaving Mills has crossed the limit of Rs. 25 lakhs. When it is so, then the appellant is not entitled to the benefit of exemption under the Notification No.35/2003 dated 30.04.2003, where in para 2(i), has discussed the aggregate value of the clearances. In the instant case, the aggregate value is more than Rs. 57 lakhs in the case of job worker M/s Dinesh weaving Mills. Thus, the statutory limit of Rs. 25 lakhs has been crossed. When it is so, then the appellant is not entitled for the exemption." 11. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respect of "aggregate value of clearances for home consumption and not separately regarding individual clearances". The extent of limits was raised by subsequent Notification dated 17.05.2003. 3 Introduced on 25.03.2003 15. In our considered view, the language of the exemption Notification as amended, is quite clear. However, certain doubts arose which were clarified by Circular dated 30.10.2003. This Circular gives three illustrations. According to the First illustration, even though the clearances of the job worker qua each of three traders was Rs. 20 lakhs since the aggregate value of clearance was Rs. 60 lakhs, he would not be eligible to claim any benefit and must pay due in respect of entire clearance. According to the second illustration so long as the clearances of the job worker were within the aggregate limit, no liability would get fixed but the moment clearances went beyond the limit, the illustration makes it clear that the entire clearances of the job worker would become dutiable. The third illustration however strikes a slightly different note and says that if a trader got grey fabrics manufactured by three job workers and the clearance value of each of those job w ..... 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