Job work exemption under Notification No. 214/86-C.E. supported interim waiver where minor inputs were used in assembly.

Use of minor inputs by a job worker in assembling air-heater block assemblies did not, at the prima facie stage, appear to take the activity outside Notification No. 214/86-C.E. The earlier remand reasoning treated the definition of job work as not excluding some raw materials used by the job worker to complete the entrusted work, and that supported the appellants' request for interim protection. On that basis, a prima facie case was found for waiver of pre-deposit and stay of recovery of duty and penalty.

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Issues: Whether the appellants had made out a prima facie case for waiver of pre-deposit and stay of recovery of duty and penalty.

Analysis: The demand arose from air-heater block assembly cleared to the principal manufacturer under Notification No. 214/86-C.E. The appellants contended that the use of some minor inputs of their own in the assembling process did not deprive them of the benefit of the notification. The earlier remand order had considered the Explanation to the notification and had indicated that the definition of job work did not prima facie exclude the use of some raw materials by the job worker for completing the entrusted work. That reasoning supported the appellants' case at the interim stage.

Conclusion: A prima facie case was found in favour of the appellants, and waiver of pre-deposit together with stay of recovery was granted.

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