Rule 57F(2) facility applies where job-worker painting is part of manufacture and coated components are returned for final assembly.

Rule 57F(2) covered removal of inputs or partially processed inputs to a job worker for operations necessary to manufacture the final product, followed by their return for further use in manufacture. Powder paint sent with component parts for spray painting was consumed in the process, but the coated components were returned to the manufacturer for completion of room air-conditioners. The fact that the paint powder itself was not returned did not take the arrangement outside the rule, because the job-worker activity formed part of the manufacturing process. The denial of the Rule 57F(2) facility was therefore not justified.

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Issues: Whether the facility under Rule 57F(2) could be denied merely because the powder paint sent to the job worker was not itself returned, where the coated components were returned to the manufacturer for completion of the final product.

Analysis: Rule 57F(2) permits removal of inputs, or inputs partially processed, outside the factory for carrying out operations necessary for the manufacture of the final product, followed by their return for further use in manufacture. The respondents sent powder paint along with component parts to a job worker for spray painting of the components, and the coated components were received back for use in making room air-conditioners. The fact that the paint powder itself was consumed in the painting process did not take the arrangement outside the rule, because the relevant components were returned after being duly painted and the job-worker operation formed part of the manufacturing process.

Conclusion: The operation carried out by the job worker was covered by Rule 57F(2), and the denial of the facility was not justified.

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