TaxTMI 
TaxTMI 
2014 (8) TMI 496
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....ant, M/s. Eaton Fluid Power Ltd., along with interest thereon and also imposing an equivalent amount of penalty. Aggrieved of the same, the appellant is before us. 3. The learned Counsel for the appellant submits that they are the manufacturers of Hydraulic Pumps, Cylinders, Valves and Power units. They procured critical components such as, hydraulic pumps, heat exchanger, filters and filter elements, electric motor, etc. and undertook partial processing and then these components, either as such or after being processed were sent to various job-workers for fabrication of structure and assembly as per the drawings and designs provided by the appellants. The job-workers also some times procured components as such pipes, fittings, etc. Afte....
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.... show-cause notice. On one hand the Revenue accepts that that duty liability has been discharged on the completed power pack at the job-workers' premises whereas on the other hand the Revenue contends that the activity does not amount to "manufacture". It is also contended that the activity of fabrication and assembly of the various components by the job-workers does not amount to job-work. Section 2(f) of the Central Excise Act, defines "manufacture" includes any process, incidental or ancillary to the completion of a manufactured product. If by the assembly of the various components, a new product or a finished product has emerged it cannot be said that no "manufacture" has taken place. Since the Cenvat Credit Rules provides for avail....
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.... the erstwhile Rule 57F(2)(b) of the Central Excise Rules, 1944. The ratio of these decisions would apply squarely in the facts of the present case also inasmuch as the goods were cleared under Rule 4 (5) (a) of the Cenvat Credit Rules, 2004 and the goods after fabrication and completion of manufacturing process have been cleared on payment of appropriate duty as per the permission granted under rule 4 (6) of the Cenvat Credit Rules. Accordingly, he pleads that the stay be granted. 4. The learned Commissioner (AR) appearing for the Revenue submits that there are procedural infractions on the part of the appellant in the present case. Cenvat Credit Scheme envisages that for taking of credit, inputs/input service should be received by the ....
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....at the job-workers' premises. In these circumstances, the conclusion drawn by the adjudicating authority that there is no job work involved in the present case is a contradiction in terms. A job work might amount to "manufacture" or might not amount to "manufacture". In many instances the job work results in production of a new commodity. For example, in the case of textile fabrics, a job-worker undertaking the process of bleaching or dyeing of fabrics, new products namely, dyed/bleached fabrics come into existence. Thus, the activities amount "manufacture". Similarly, in the case of a bus body built on a chassis, the activity amounts to "manufacture". Therefore, it cannot be said that since the activities undertaken result in a new com....