Job-work exemption under excise notification upheld for goods emerging as a new product after processing.

Notification No. 119/75-CE was considered for goods manufactured on a job-work basis where processing produced a new article, and the dispute turned on whether the exemption was confined to cases where the same article was returned after processing or whether it also covered material change in the raw material. The Board treated the issue as one of exemption scope under the Central Excises and Salt Act, with reference to manufacture under Section 2(f), and accepted the view that the claim remained available on the facts considered. The exemption claim was allowed in favour of the assessee.

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Issues: Whether the benefit of Notification No. 119/75-CE, dated 30-4-1975, was available to goods manufactured on job work basis where the process resulted in a new product, and whether such activity fell outside the definition of manufacture under Section 2(f) of the Central Excises and Salt Act.

Analysis: The dispute concerned exemption for goods falling under T.I. 68 manufactured on job basis, the exemption being limited to duty on the job charges received. The departmental view was that the notification applied only where the same article was returned after processing, and not where the raw material underwent a material change leading to a new article. The appeal was considered on the record, the written grounds, the oral submissions, and the cited authorities, and the matter was decided on merits in favour of the appellant.

Conclusion: The exemption claim was accepted and the appeal was allowed in favour of the assessee.

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