Rule 57-S job worker scope limited to mould-and-die removals, so pre-deposit of duty and penalty was waived.

Rule 57-S of the Central Excise Rules, 1944 was interpreted as governing removal of moulds and dies to a job worker for manufacture on behalf of the principal manufacturer, and not as importing the broader job-worker concept used in exemption notifications such as Notification No. 214/86-C.E. The Tribunal applied its earlier decision on identical facts and held that the appellant could not be required to make a pre-deposit of duty and penalty when duty had already been paid in accordance with law and the issue was covered by precedent. Pre-deposit was waived.

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Issues: Whether the appellant was entitled to waiver of pre-deposit of duty and penalty on the footing that it was a job worker under Rule 57-S of the Central Excise Rules, 1944.

Analysis: The Tribunal followed its earlier decision on identical facts and held that the expression "job worker" in Rule 57-S could not be equated with the meaning given to that term in exemption notifications such as Notification No. 214/86-C.E. The scheme of Rule 57-S, particularly sub-rules (8) to (10), was treated as dealing with removal of moulds and dies to a job worker for manufacture on behalf of the principal manufacturer, and not as requiring the same raw-material-based relationship contemplated by the exemption notification. Since the appellant had already paid duty in accordance with law and the issue was covered by prior Tribunal precedent, insistence on pre-deposit was not warranted.

Conclusion: Pre-deposit of duty and penalty was waived in favour of the appellant.

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