TMI Blog2024 (3) TMI 1227X X X X Extracts X X X X X X X X Extracts X X X X ..... gh M/s SAL are making payments to the suppliers of ingots, the same is but on behalf of, the appellants, by debiting to the account of the appellants. It is seen that this is only a financial arrangement and it in itself does not render the appellants to be the job-workers of M/s SAL. There is no indication either in the orders placed by M/s SAL on the appellants or in the invoices issued by the appellants to M/s SAL, that the whole arrangement is of any job-work - the argument of the appellant that if they were job-workers for M/s SAL, M/s SAL would have availed the benefit of notification no. 214/86 - there is no reason for M/s SAL to pay for the full value of Brake Shoes rather than job charges, if the manufacture by the appellant was on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ged on the basis of 110% of the cost of production, under Rule 10(iii) of CEVR, 2000, read with Rule 8 ibid. A Show Cause Notice dated 19-12-2011, invoking extended period, covering the period 01.01.2007 to 31.08.2011, was issued to the appellant demanding duty of Rs 71,12,413 along with interest and equal penalty under Section 11AC of Central Excise, Act 1944; Commissioner vide order dated 27 February 2013 confirmed the demand raised along with interest and imposed equal penalty. Hence, this appeal. 2. Shri N.K. Sharma, learned Counsel for the appellants submits that the relation between the appellant and M/s SAL was on Principal to Principal Basis; they were not Job workers of M/s SAL; the transactions were at arm s length; Purchase order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l for the appellants submits further that the appellant had nothing to gain by claiming not to be a job worker as the exemption under Notification 214/86 was anyway available to them; moreover, duty even if paid on 110%, would have been available as credit to M/s SAL and therefore, the issue is revenue neutral. He submits that in the instant case, there was no justification for invoking extended period as there was no suppression etc. with intent to evade payment of duty; as there is no merit in the case, the question of penalty also does not arise. 5. Shri Pawan Kumar, learned Authorized Representative for the Revenue reiterates the findings of the impugned order. 6. Heard both sides, and perused the records of the case. Brief issue which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y were job-workers for M/s SAL, M/s SAL would have availed the benefit of notification no. 214/86. We find that there is no reason for M/s SAL to pay for the full value of Brake Shoes rather than job charges, if the manufacture by the appellant was only on job-work basis. 9. Learned Counsel for the appellants submits that in their own case, learned Commissioner (Appeals) has dropped the issue, raised vide four show cause notices issued, for the subsequent period, on the very same issue. We find that Revenue cannot accept a preposition for a later period and agitate the same for an earlier period, particularly when there is no change in the facts and circumstances. We find that Ld. Commissioner (appeals),vide order stated 29/06/2016, comes t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation of impugned goods is to be done under Section 4(1)(a) ibid and Rule 10A of Valuation Rules is not applicable in this case. (v) I also find that the Adjudicating Authority has not put forth any evidence, whether in the form of a agreement or in some other form, to prove that the appellant has been manufacturing his goods on behalf of M/s Sunbeam from. the inputs supplied by M/s Sunbeam. The invoices of the appellant raised to M/s Sunbeam as well as various purchase orders executed between the appellant and M/s Sunbeam are sufficient proof to substantiate that impugned transactions are on sale basis', 'on principal-to-principal basis and also at arm's length. The observations/conclusions of Adjudicating Authority are based o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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