Job worker exemption denied where mandatory principal-manufacturer declaration was absent and double exemption would result.

Exemption for a job worker under Notification No. 214/86 required a mandatory declaration or certificate from the principal manufacturer, and none was filed. The principal manufacturer was already availing area-based exemption under Notification No. 50/2003, so granting the job worker the same benefit on the same raw material would amount to impermissible double exemption. The goods manufactured were excisable goods under Chapter 40 of the Central Excise Tariff Act, 1985 and were cleared for the industrial market without payment of duty. The exemption claim was therefore rejected and duty was held leviable.

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Issues: Whether the appellant was entitled to exemption as a job worker under Notification No. 214/86 dated 25.03.1986 despite absence of the principal manufacturer's declaration and in the face of the principal manufacturer already availing area-based exemption.

Analysis: The exemption under Notification No. 214/86 was subject to a mandatory declaration or certificate from the principal manufacturer. No such declaration was filed. The principal manufacturer was already availing area-based exemption under Notification No. 50/2003, and allowing the appellant the further benefit of Notification No. 214/86 on the same raw material would amount to impermissible double exemption. The goods manufactured were excisable goods falling under Chapter 40 of the Central Excise Tariff Act, 1985 and were cleared for industrial market without payment of duty.

Conclusion: The appellant was not entitled to the claimed exemption and duty was leviable; the denial of exemption was upheld.

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