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TMI Blog2020 (10) TMI 316X X X X Extracts X X X X X X X X Extracts X X X X ..... to August, 2009. 2. In addition to manufacturing of the final products within its factory, the appellant also engages other manufacturers (industries) to do manufacturing activity on job work basis, for which raw materials are supplied by the Appellant. The manufacturing activity in such cases is undertaken by job workers in their own premises. Appellant neither operated under rule 4(5)(a) of the Cenvat Credit Rules, 2004 (Credit Rules), nor undertook any responsibility of using job worked goods in further manufacture of dutiable goods and of discharging duty liability thereon, in terms of Notification No. 83/94-CE dated 11.04.1994, 84/94-CE dated 11.04.1994 or 214/86-CE dated 25.03.1986. Further, no declaration/undertaking to pay duty wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eriod of limitation along with interest under Section 11AB /11 AA ibid and penalty under Section 11 AC ibid, read with Rule 25 of the Excise Rules and under Rule 27 ibid. The show cause notice alleged that the value of clearances made by the Appellant from its own factory as well as from the factories of the job-workers are liable to be clubbed in terms of Para 2(v) & (vii) of Notification No.8/2003 CE, for denial of benefit of exemption under the said notification. 6. Appellant filed detailed reply to the show cause notice vide letter dated 04.03.2013 rebutting the allegations contained in the show cause notice. The ld. Additional Commissioner, vide Order-in-Original dated 11.03.2013 (Order-in-Original) dropped the proceedings initiated v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... independent of and without prejudice to each other. 10. Ld. Counsel for the appellant, at the outset, urges that the similar issue has been considered by this Tribunal in the case of sister unit of the appellant viz. Mewar Hi-tech Engineering Ltd., whereby this Tribunal vide Final Order No.A/51162/2019-EX(DB), decided the issue in favour of the appellant. 11. Ld. Counsel further urges that admittedly the goods have been manufactured by the job workers independently without any control and supervision of the appellant. Only for mere supply of raw materials by the appellant, would not cast excise duty liability on the appellant. Further, the transactions between the appellant and the job workers were on principal to principal basis. The en ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... interpretational in nature. Further, the appellant was under bona fide belief that under the facts and circumstances, the duty liability, if any, arises on the job workers, as the job workers are the real manufacturers as per the provisions of the Central Excise Act. 14. The ld. Authorised Representative for the Department relied upon the impugned order. 15. He further urges that though the clearances of final products manufactured by the job workers, were made directly by the job workers to the buyers of the goods, but as the commercial invoices for sale of such goods have been raised by the appellant, and the job workers have only received their job charges, thus, the appellant is the actual manufacturer and accordingly, the Court belo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wherein the principal manufacturer gives an undertaking to the jurisdictional Central Excise Authority of the job worker to pay the duty. In the present case, admittedly, no such procedure was undertaken. Hence, under the scheme of the Act, ipso facto the duty liability is on the job worker. Accordingly, we hold that the appellant is not liable to pay any central excise duty for the goods got manufactured and cleared from the job worker's premises. 18. As regards the issue of limitation, we find that admittedly, the appellant has maintained proper books of accounts' register and vouchers of their transactions and has also disclosed such transactions before other Tax Authorities, as the appellant was not liable to pay central excise duty b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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