2000 (3) TMI 413

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Shri Sanjeev Srivastava, JDR, for the Respondents. [Order per : C.N.B. Nair, Member (T)]. -  M/s. J. Ice Cream Pvt. Ltd. are a small scale unit engaged in the manufacture of ice creams. Under an agreement with M/s. Milkfood Ltd., M/s. J. Ice Cream Pvt. Ltd. manufactured ice creams under the brand name 'Milkfood 100%' on job work basis. The brand name belonged to M/s. Milkfood Ltd. The ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ing and other materials, inspection and supervision etc. do not, in any way, alter the relationship between the job worker and the buyer of the goods. The transaction is a purely commercial one and in terms of the Apex Court's decision in Ujagar Prints case, the assessable value is to be the total of the cost of the materials used in the manufacture and job charge. It has, therefore, been submitte....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....vement does not alter the principal to principal basis of the relationship between the two parties. 4. We have heard the learned DR who pointed out that the appellants had not disclosed their agreement with M/s. Milkfood Ltd. to the Revenue and that the terms of the agreement were such that M/s. Milkfood Ltd. closely controlled and supervised M/s. J. Ice Cream Pvt. Ltd. These terms warrant....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....hem. That unit is not working from 1996 and is without any capacity to pay the duty demand and penalty. In these circumstances, we are of the view that this is a fit case for waiver of duty and penalty on M/s. J. Ice Cream Pvt. Ltd. M/s. Milkfood Ltd. are only buyers of the goods and had no responsibility towards central excise authorities with regard to the correct payment of duty on the goods ma....