Registered textile job worker compliance under Rule 12B(1) prevents liability being fastened on the other party for duty-paid goods.

Rule 12B(1) of the Central Excise Rules, 2002 places the procedural and compliance burden on a duly registered textile job worker, including maintenance of accounts, duty payment, invoice preparation and related requirements. On the stated facts, the job worker was registered with the Central Excise Department and the invoices showed that the seized goods were duty paid; the revenue did not dispute that position. Liability therefore could not be fastened on the other party merely on the basis of movement of goods under the job-work arrangement, and the adjudication setting aside was sustained.

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Issues: Whether, in view of Rule 12B(1) of the Central Excise Rules, 2002, the respondent could be fastened with liability when the job worker had obtained registration and the goods were found to be duty paid.

Analysis: The proviso to Rule 12B(1) permits a job worker in the textile sector to obtain registration and, in that situation, the provisions of the rules operate against the job worker for maintaining accounts, paying duty, preparing invoices and complying with the procedural requirements. On the facts, the job worker was registered with the Central Excise Department for processing textile goods, and the invoices placed on record showed that the seized goods were duty paid. The revenue did not dispute that factual position.

Conclusion: The respondent could not be implicated on the basis urged by the revenue, and the order setting aside the adjudication was sustained.

Final Conclusion: The appeal was rejected after holding that the registered job worker bore the relevant compliance responsibility and the respondent was not liable on the facts established.

Ratio Decidendi: Where the job worker in textile processing is duly registered and the goods are shown to be duty paid, liability cannot be fastened on the other party merely for movement of goods under the job-work arrangement.

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