Rule 57S(8) permits duty-free removal of moulds and dies to a job worker without requiring supply of raw materials by the manufacturer.

Rule 57S(8) of the Central Excise Rules, 1944 permits a manufacturer, with the Commissioner's permission and subject to prescribed conditions, to remove moulds and dies without payment of duty to a job worker for manufacture on the manufacturer's behalf and to its specifications. The provision does not require the manufacturer to supply the raw materials used by the job worker, and a narrower definition of "job work" in a different exemption notification cannot be imported to restrict it. The Madras HC therefore accepted that removal of moulds and dies under Rule 57S(8) could be made without reversal of credit, and the Revenue's challenge failed.

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Issues: Whether, for the purpose of Rule 57S(8) of the Central Excise Rules, 1944, moulds and dies could be removed without payment of duty to a job worker even where the assessee did not supply the raw materials used for manufacture of the goods.

Analysis: Rule 57S(8) is a special provision enabling a manufacturer, with the Commissioner's permission and subject to prescribed conditions, to remove moulds and dies without payment of duty to a job worker for production of goods on the manufacturer's behalf and according to the manufacturer's specifications. The provision does not add any condition that the raw materials must also be supplied by the assessee. The Court distinguished the Supreme Court decision construing a different exemption notification, holding that the meaning of "job work" in that notification could not be imported into Rule 57S(8). The earlier Tribunal view in Monica Electronics, which had accepted that raw-material supply by the assessee was not essential under Rule 57S(8), had also been accepted by the Department.

Conclusion: The assessee was entitled to remove moulds and dies under Rule 57S(8) without reversal of credit, and the Revenue's challenge failed.

Final Conclusion: The appeals were held not to raise any sustainable question against the assessee, and the Tribunal's relief was upheld.

Ratio Decidendi: Rule 57S(8) permits removal of moulds and dies to a job worker on the Commissioner's permission without requiring the assessee to supply the raw materials used by that job worker, and a definition of job work in a different exemption notification cannot be imported to restrict that rule.

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