1999 (9) TMI 162

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....of insulated wires and cables. They manufactured paper covered copper strips on job work basis for M/s. B.H.E.L. Such manufacture was undertaken by them from 1978 onwards. The benefit of Notification No. 214/86-C.E. was availed of by the applicant when clearing the product manufactured for M/s. B.H.E.L. On 28-1-1998, the Show Cause Notice was issued in which the claim was made that the goods so manufactured were not eligible for the benefit of the said Notification on the following grounds : "(i) a distinct product was manufactured, viz. paper covered copper strips falling under Chapter sub-heading 8544.00, out of the raw material, viz. copper bar/rod/strip, falling under Chapter 74; (ii) the said assessee had used their own....

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....n on payment of fine of Rs. 10 lakhs. The assessees filed an appeal as also this application for waiver of pre-deposit of the duty and penalty and stay of recovery thereof. 3. We have carefully considered the submissions. 4. This notification exempts the goods manufactured in a factory on job work basis. Then Notification stipulates that the goods so cleared under this Notification should be used by the principal manufacturers in the manufacture of final goods in the principal manufacturer's factory or that these goods could also be sent to another job worker, for ultimate manufacture of the final products. The supplier of the raw materials has to give an undertaking to the Assistant Collector undertaking to produce evidence....