Job-work exemption under Notification 214/86-C.E. cannot be denied merely because goods were sold without physical removal.

Notification No. 214/86-C.E. applies to a supplier of material in a broad sense, and not only to a supplier who physically removes goods from the premises. Where plain aluminium foils were sold on Modvatable invoices and there was no material to doubt that the buyers had taken credit of the duty, the assessee was not disentitled from undertaking printing job work at its premises merely because the foils were not physically removed. The denial of the notification benefit was therefore unsustainable, and the duty demand could not be maintained.

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Issues: Whether the assessee was entitled to conduct printing job work at its premises and claim the benefit of Notification No. 214/86-C.E. despite having sold the aluminium foils without physically removing them from the premises.

Analysis: Notification No. 214/86-C.E. uses the expression "supplier of material", and not merely a physical supplier in a restricted sense. The fact that the plain foils had been sold to buyers without physical removal did not, by itself, disentitle the assessee from carrying out the job work. The notice itself indicated that Modvatable invoices were issued for the plain foil, and no material was shown to doubt that the buyers had availed credit of the duty on such foil. In these circumstances, the benefit of the job-work procedure could not be denied.

Conclusion: The denial of the notification benefit was unsustainable and the duty demand could not be maintained.

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