TMI Blog1993 (8) TMI 70X X X X Extracts X X X X X X X X Extracts X X X X ..... ack to the owners. The rollers are made wholly of copper or of steel with the surface of copper-layer and it is not in dispute that the rollers are not manufactured by the petitioners. After the rollers are received by the petitioners, the job work is undertaken for impressing designs on the rollers. The petitioners carry out the work of brushing, sharpening the impressions, and enlivening the design for use. The designs engrave on copper rollers fade out after some use and the rollers are returned back to the petitioners for re-engraving. The work of engraving or re-engraving is carried out by assistance of lathe machines but mainly by manual exercise. The petitioners claimed that process carried out by the petitioners does not amount to ' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... valorem. The classification list was approved on May 7,1979 by Assistant Collector of Central Excise holding that the duty is payable on the entire value of engraved rollers. The Superintendent, Central Excise, served show cause notice dated June 18, 1979 upon the petitioners to show cause why excise duty of Rs. 9,72,629.60 should not be recovered under Rule 9(2) and Rule 10(1) of Central Excise Rules and why penalty should not be imposed. The show cause notice, inter alia, claimed that the petitioners were manufacturers and cleared 7055 copper engraved/re-engraved rollers valued at Rs. 1,84,69,480.00 without obtaining Central Excise licence. The show cause notice further claimed that during the period commencing from May 5, 1978 and Novemb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , Bangalore). The appellate authority felt that the Tribunal being a higher authority, the decision is binding on the Collector of Appeals. The orders by the two authorities below are under challenge in this petition filed under Article 226 of the Constitution of India. 4. Shri Thacker, learned counsel appearing on behalf of the petitioners, submitted that the authorities below were in error in concluding that the process undertaken by the petitioners amounts to manufacture as contemplated under Section 2(f) of the Act. The learned counsel complained that it was wrong on the part of the appellate authority to ignore decisions earlier recorded in a group of 40 appeals and proceeded to hold otherwise only on the basis of decision of the Tri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It is not in dispute that after undertaking the process of engraving/re-engraving, the copper rollers acquired commercial value and, therefore, it is futile to suggest that the process undertaken is strictly not a manufacture. 5. Shri Thacker then submitted that even assuming that the process is one of manufacture, still it is not permissible for the respondents to levy excise duty on the value of the copper rollers for the process carried out by the petitioners. The submission is correct and deserves acceptance. Shri Thacker placed strong reliance upon Notification No. 119/75 dated April 30, 1975 to urge that in respect of goods manufactured in the factory as a job work, the duty of excise leviable has to be calculated on the basis of am ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed and learned counsel for the Department, did not dispute the claim, that the petitioners have asserted the satisfaction of all the three conditions in the petition and in the return filed by the Department, there is no challenge to the claim of the petitioners. In view of this fact, Shri Thacker is right in his submission that the liability of the petitioners is to pay excise duty on the basis of the amount charged for the job work. There is considerable merit in the submission of Shri Thacker that the appellate authority by decision recorded on June 16, 1984 in group of 40 appeals had rightly held that the liability of the petitioners is to pay duty in accordance with notification dated April 30,1975. The contrary view taken by the sam ..... X X X X Extracts X X X X X X X X Extracts X X X X
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