Duty on job-worked stampings turned on Notification 214/86-CE compliance and the actual manufacture of PD pump components.

Duty liability on electrical stampings depended on whether the job workers manufactured them under Notification No. 214/86-CE or independently without that benefit. The factual distinction was material because stampings cleared under the notification and used in dutiable fans would not create intermediate duty liability for the principal manufacturer, while use in exempt PD pumps could alter the duty position. The earlier remand required verification of actual quantities and the manner of manufacture, but the matter was again decided on the same assumption without the necessary factual inquiry. The impugned order was set aside and the case was remanded for fresh factual verification.

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Issues: Whether duty was payable on electrical stampings manufactured by job workers for use in fans and PD pumps, and whether the factual position regarding manufacture under Notification No. 214/86-CE required fresh examination.

Analysis: The dispute turned on whether the stampings used in PD pumps were manufactured by the job workers in terms of Notification No. 214/86-CE or were independently manufactured without its benefit. If the stampings were cleared under the notification and used in dutiable fans, no duty liability would arise on the principal manufacturer for the intermediate goods; if they were used in exempt PD pumps, the duty burden would arise differently. The earlier remand had directed verification of the actual quantities and the factual manner of manufacture, but the lower authority again decided the matter on the same legal assumption without undertaking the required factual inquiry.

Conclusion: The impugned order was set aside and the matter was remanded to the adjudicating authority for factual verification of whether the stampings used in PD pumps were manufactured under Notification No. 214/86-CE or independently by the job worker.

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