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2012 (12) TMI 1012
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....M/s. Neelkamal Limited. Plastic furniture is supplied by the Appellant to M/s. Neelkamal Limited at the price determined in terms the of pricing formula as specified in the agreement which is based on the cost of raw material including freight plus conversion cost at the rate of Rs. 9.50 per kilograms weight of the moulded furniture plus excise duty as applicable.The appellant were discharging duty liability on the plastic moulded furniture manufactured by them and supplied to M/s. Neelkamal Limited on the above mentioned contract price. The department was of the view that the appellant were the job workers and hence the provisions of Rule 10A of Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000 will become ap....
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....n respect of stay application. 3. Ms. Padmawati Patil, Advocate, the learned Counsel for the appellant, took us through agreement dated 2nd August, 2001 between appellant and M/s. Neelkamal Limited and submitted that perusal of this agreement prima facie indicate that the appellant is principal manufacturer and is not covered by the definition of "job worker", as given in explanation to Rule 10A of Central Excise Valuation Rules, 2002. Learned Counsel for the appellant pleaded that from the various clauses of agreement, it is clear that the transactions between and the appellant and M/s. Neelkamal Limited were on principal to principal basis. She also submits that though plastic moulds were supplied by M/s. Neelkamal limited, and the app....
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....he appellant and M/s. Neelkamal Limited would show that real intent of the Appellant company was that they shall act as job worker on behalf of the M/s. Neelkamal Limited. Ld. DR has drawn our attention to the clause 7,9,10,11(1) and 12 and 20 of the agreement which are reproduced as under:- 7. It is agreed between the Party of the First Part and the Party of the Second Part that the Party of the Second Part shall allow the Party of the First Part to supervise the quality of the said products manufactured by the Party of the Second Part so as to ensure that the same confirms to the quality, standards and specifications laid down by the Party of the....
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....arty of the First Part and the Party of the Second Part that the Party of the Second Part will procure that raw material of required grades from the specified and approved Raw Material Manufacturers and manufacture the said products out of such approved Raw Materials only so as to maintain the consistent quality standard as per the specifications and directions of the party of the First Part. For the same, the Party of Second Part shall rely upon the data sheet sent in writing to it, and shall not deviate from the same. 11. It is agreed between the Parties hereto that the price formula for the said products agreed between the parties in as follows:....
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....; 4.1 Learned DR has submitted that on reading of these clauses it is evident that real intent of the party was that the appellant company would act as job worker for M/s. Neelkamal Limited and the agreement has been deliberately drafted to give impression that it was transaction between the appellant company and M/s Neelkamal Limited on principal to principal basis. He, therefore, pleaded that the appellants do not have a case for waiver of pre-deposit. 5. We have considered the submissions from both sides and perused the records. Provisions of Rule 10A of Central Excise Valuation Rules are applicable to the excisable goods manufactured or produced by a job worker on behalf of principal manufacturer. ....