TaxTMI 
TaxTMI 
TaxTMI 
2006 (7) TMI 4
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.... all these appeals, they are being disposed off by the common order. 4. The brief facts of the case are as follows:- The appellants, M/s Diffusion Engineers Ltd., Nagpur is engaged in the manufacture of Flux Coded wire and welding electrodes in their Unit No. 1 at Plot No. T-5/6 MIDC Hinga, Nagpur. They have another unit at N-78, MIDC Nagpur (Unit No. II) engaged in repairing defective grinding rolls, vessels, .worn out table liner, rollers liners etc. on job work basis, which are sent to Unit No. II by their customers. After the requisite repairing work, they are returned to its suppliers who pay the job charges to the appellants. The welding electrodes and flux code wires manufactured by Unit No. l were cleared on payment of duty to unr....
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.... (S.C.). Adjudicating authority as well as the Commissioner (Appeals) held that the refund claims were hit by principles of unjust enrichment and therefore ordered to credit the same to the Consumers Welfare Fund. Hence these appeals. 7. Commissioner (Appeals) in his impugned order observed that though the earlier Order-in-Appeal No. RK/7/NGP-1/2003 passed by the Commissioner (Appeals) speaks that the appellants are entitled to refund of excess duty paid by them, there was no specific direction to pay the excess duty amount to the appellants. Further, his observation is that the appellants had made an agreement with the 3rd party for certain job work on some money consideration and the said job work was performed by Unit No. II for carryin....
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....ace the burden on the appellants. The learned Commissioner erred in relying upon the Supreme Court judgment in Solar Pesticide P.Ltd. case because the facts of the appellants case are different from those involved in the case of Solar Pesticide. In that case the imported raw material was utilized in the manufacture of final product which were sold and therefore the court had held incidence of such duty on the imported raw material have been passed on to the buyer indirectly. In the present case the welding electrodes were not used in the manufacture of any final product which were sold and therefore the ratio of Solar Pesticide case is not applicable. Lastly their contention is that the rate of job work charges recovered by Unit. No. II is ....
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....I is engaged in doing job work for which welding electrodes are required to be used. The raw material not being totally consumed for each piece of job work. The quantum of raw material consumption depend on the quantum of job work received. After repairing or reconditioning goods they are being given back to the same person from whom they have received. In other words it is to be said that the raw material received by unit No. II is not. being captively consumed in the manufacturing of final product as there is no emergence of new product, which is being sold. Unit No. II is simply attending to the job work and collecting job work charges after redelivering the goods. Thus, it is to be observed that neither unit No. I nor unit No. II of the....