TaxTMI 
TaxTMI 
2015 (10) TMI 1565
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....ppellants to convert these waste materials into aluminium ingots. The said aluminium ingots are returned by the appellants to AEL. All these activities happen within the premises of AEL. 2. Demand notices were issued to the appellants demanding Central Excise duty on the ingots manufactured by them on the grounds that the appellants are manufacturers in their own right and should have obtained separate registration. It was alleged that it is immaterial that the appellant or operating within the premises of AEL. 3. The learned Counsel for the appellant pointed out that a demand notice was issued to AEL, as well, demanding duty on the aluminium dross, aluminium turning and aluminium oily flash cleared by AEL to the appellant. The said dema....
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.... therefore job work shall be treated as independent manufacture and not the premises owner some of the judgment are cited below:- Hindustan Zinc Ltd. Vs., CCE, Jaipur-II [2015(315) E.L.T. 86(Tri-Del.) 6. The appellant had got the zinc and lead electrodes fabricated through job workers in their own premises out of the raw materials and design supplied by them. Though the job worker had brought their own machinery and appliances and their own workers, the job had been done in the appellants premises and under the appellants supervision. It is seen that in terms of the appellants contract with their job workers, the job workers were to pay the minimum wages to the skilled and unskilled labourers as per the Governments orders and were to c....
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....s and, therefore, the duty on Aluminium and lead electrodes got manufactured by them on job work basis cannot be demanded from the appellant by treating them as manufacturers. The impugned orders are set aside. The appeals are allowed. In view of the above judgment of coordinate bench of this Tribunal it is settled that if job worker is doing job work within the factory premises of the principal with his own capital goods, it is job work and shall be treated as manufacture. In the present case, job worker M/s. Shridhar Metal Works carried out manufacturing process of aluminium ingots in the premises, which was taken on leave and licence basis on consideration of rent, therefore M/s. Shridhar Metal Works is manufacturer on job work basis t....
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.... shall be allowed even if any inputs or capital goods as such or after being partially processed are sent to a job worker for further processing, testing, repair, re-conditioning, or for the manufacture of intermediate goods necessary for the manufacture of final products or any other purpose, and it is established from the records, challans or memos or any other document produced by the manufacturer or provider of output service taking the CENVAT credit that the goods are received back in the factory within one hundred and eighty days of their being sent to a job worker and if the inputs or the capital goods are not received back within one hundred eighty days, the manufacturer or provider of output service shall pay an amount equivalent t....
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....f duty, all these stags of the movement of goods from the raw-material stage up to the final product no duty is leviable. In the present case remnant are at intermediate stage that means initial input on which Cenvat credit is availed has under gone the process of manufacturing and during such process the remnant arose. The said remnant were sent for job work and it converted into aluminium ingots and said resulted ingots were used in the motor vehicle parts which are cleared on payment of duty. In this chain the remnant is an intermediate input therefore movement of such input undoubtedly covered under Rule, 4(5)(a) of Cenvat Credit Rules, 2004 and Rule 16(a) of Cenvat Credit Rules, 2002. Therefore no duty can be demanded on the removal of....