TMI Blog2003 (5) TMI 123X X X X Extracts X X X X X X X X Extracts X X X X ..... system; that the drawings and designs were supplied by PSEB and they further entered into contract with M/s. H.B. Construction Co. regarding supply of conduits for the construction of circulating water system; that the scope of contract was fabrication and erection of circulating water pipes including marking, Rolling, Cutting and Jointing of plates including Jointing, Welding, Shifting of Pipes to erection site, laying of pipes, Alignment, Fitting, Hydrotesting and Radiography repair of pipes as per the specifications and drawings given by the site incharge; that all the materials like M.S. Sheets/Plates etc. were to be provided by them; that all the tools and tackles would be arranged by M/s. H.B. Construction; that the Commissioner unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1, in his statement dated 7-12-2002 has clearly deposed that the entire work of fabrication of M.S. Pressure Pipes was executed by M/s. H.B. Construction, sub-contractor; that mere fact that their Works Manager used to supervise the work at site will not make the Appellant as manufacturer. The learned Advocate also mentioned that Shri Harbhajan Singh of M/s. H.B. Construction Co. has very categorically stated, in his statement, that the fabrication of pipes and other related work was performed by his construction company only. Finally, learned Advocate relied upon the decision in the case of J.S.T. Engineer Services v. CCE, Jamshedpur, 2001 (133) E.L.T. 350 (T) wherein it has been held that the supplier of raw material does not become manuf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arned SDR, submitted that Shri Sukhwant Singh, Mechanical Engineer, under whose supervision the entire work of fabrication and erection of M.S. Pipes had been done at the site, had deposed in his statement dated 10-8-2000; that for the purpose of execution of work, they had installed 13 roller bending machines of size 2500 mm width and other welding machines at the site; that this statement clearly shows that the machines were supplied by the Appellants for carrying out work of fabrication of M.S. Pipes at site; that as per tender notice one of the conditions for issuance of tender documents was that the tenderer must have in his possession plate bending machines to bend plates up to 12 mm thickness, necessary fabricating and welding tools ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h were produced by them on account of sub-contractor and complete amount was to be deducted in ten equal instalments. The learned Advocate also mentioned that the duty has been demanded on the entire cost of the contract. The learned SDR countered by submitting that the Appellants had not given bifurcation of expenses incurred on different items, therefore, duty has to be demanded on the cost. 6. We have considered the submissions of both the sides. Central Excise duty is levied and collected on the goods manufactured in India and the manufacturer is liable to pay Central Excise duty. Manufacturer is the one who actually undertakes the manufacturing activity. It has been contended by the Appellants that after entering into a contract with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e has to be given by PSEB to the Appellants because the contract was entered into with PSEB and not with the sub-contractor. In the case of SRF Limited, the Tribunal has referred to the decision in the case of Binny Ltd. (Engg. Works), Madras, [1998 (99) E.L.T. 681 (T) = 1998 (24) RLT 180] in which case the Tribunal had held that mere supply of raw materials to job worker did not make him hired labour when he was having his own independent unit. The Bench had further observed that "to constitute hired labour, relationship of Master and Servant between those Hired and Hiring is a must, which implies active control and supervision of those hired". In the case of Dempo Engineering Services also sub-contractor was held to be liable to pay duty, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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