TaxTMI 
TaxTMI 
TaxTMI 
2016 (5) TMI 745
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.... said process of lamination on job work basis on the material supplied by Bus Body Builders. The respondent received the raw material for doing the job work under the Annexure II challans issued by the Bus Body Builders under Notification No. 214/86-CE dt. 25.3.1986 and/or under erstwhile Rule 57F(2) of Central Excise Rules,1944, as prevailing during the material time. After the job work, the respondent returned the job work goods under the same Annexure II challans to the Bus Body Builders without payment of duty, thus neither the respondent nor the Bus Body Builders, who are the principal supplier of raw material paid the duty on job work goods. The Bus Body Builders used the said job work goods in the further manufacture of bus body which was exempted by virtue of notification No. 162/86-CE dt. 1.3.1986 (Entry No. 18) as amended by Notification No. 63/93-CE dt. 28.3.1993. In terms of Notification No. 214/86-CE the laminated sheets manufactured by the respondent on job work basis could be declared duty free only if used in the manufacture of final product on which duty of excise was leviable. Since, the bus body builder were exempted w.e.f. 1.3.1993, the bus body builders were no....
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....entral Excise duty therefore the extended period of demand is invocable. 4. At the outset, Shri M.H. Patil, Ld. Counsel, alongwith Ms. Aparna Hirandagi, Advocate, Shri Akshit Navenay Advocate submits that before going into the merit of the case, he would like to argue the case on time bar. He submits that the respondent is doing only job work on the material supplied by principal manufacturer i.e. body builders. The procedure for job work has been prescribed under Rule 57F(2) and the notification No. 214/86-CE. In the said procedure, it is the principal supplier of raw material who has to undertake to discharge the excise duty on their final products wherein the job work goods is used. The respondent received the material under the cover of Annexure II challans issued under Rule 57F(2) and/or Notification No.214/86-CE dt.25.3.1986 whether the condition of Notification No. 214/86-CE is fulfilled or otherwise it is a look out of the principal supplier of the raw material for the reason that as per the clear condition prescribed in the Notification No. 214/86-CE. It is the principal manufacturer who has to bind himself to discharge the excise duty. It is also on record that all the b....
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....ding on the issue of time bar in the impugned order which is reproduced below: (iii) The assessee, M/s.Virama Laminates was carrying out the job work since 1989 under Notification No. 214/86 and/ or Rules 56B or 57F(2). They filed the classification lists from time to time which were approved by the Department. They have submitted copies of their classification lists for the period 93-94, 94-95, which have been approved by the Department. In these lists It has been very clearly mentioned at Sr.No:4 as under:- "Other articles of aluminium -Polynet- PVC Aluminium (PVC aluminium sheets) pasted -We are continuing modvat. We also declare that we are doing job work under Notification No. 214/86, 56 Band 57F (2)" These classification lists have been checked and approved by the department. Also the corresponding RT-12s for the period from March'93 to March'95 were already assessed. In the circumstances, it cannot be said by any stretch of imagination that the Department was not aware of the fact that assessee were also carrying on the said process on job work basis or that the Department came to know the same only when they made the alleged surpri....
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....ification No. 214/86 or not. The supplier has also to get the approval/give intimation from/to his jurisdictional Assistant Collector and/or the Superintendent of Central Excise of the concerned Range before dispatching the goods to the job worker. It is for such jurisdictional Assistant Collector and/or the Superintendent of Central Excise to verify whether such supplier is entitled to avail the benefit under Notification No. 214/86. In the instant case the Bus Body Builders (suppliers) are situated in different ranges of the Excise Authorities and each such area Authority has preauthenticated the Annexure-II challans issued by the Bus Body Builders which were valid at least until 1993 while the tariff entry conditions allegedly remained the same for availing benefit under Notification No. 214/86. Thereafter, if the final products have become exempt from payment of Excise duty with effect from 1.3.1993 as alleged, it was the obligation, responsibility and/or the liability of the suppliers not to have availed the benefit of the said Notification No, 214/86 and not to have sent the goods for processing to the assessee under Annexure-II challans if their final products became totally....
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....nt of total Excise Duty under Serial No.17 or 18, as the case may be. The assessee were right in believing, therefore, that the Bus Body Builders would be making payment of duty on the final products and therefore, had sent the goods for processing to the assessee under Annexure-II challans. The assessee however, were never informed nor were aware as to the Chapter sub-heading under which the said Bus Body Builders classified their products and it could have been classified as well under Chapter sub-heading 87.07 which relates specifically to Bodies (including cabs) for the motor vehicles of Heading nos.87.01 to 87.06 in respect of which there has never been any exemption granted from payment of whole of the Excise Duty. For that matter, the assessee could as well as be justified if they had assumed that the final products manufactured by the Bus Body Builders were falling under Heading 87.07. In view of the above, it would be impossible to conceive that the job worker should know when he takes on the job work of processing raw material supplied by the supplier, the final product which is manufactured by a supplier of raw materials, its classification and whether the supplier has....
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....ification Nos. 83/94 and 84/94 dated 11.4.94." These Bus Body Builders were in the business of Bus Body building for over 10 years and were paying duty on their finished goods under Chapter sub-heading no. 87.02 or 87.04 as the case may be and were therefore fully conversant with Central Excise laws and procedures. The assessee had no control or nexus with their customers Bus Body Builders. The letters dated 27.4.94, 4.5.94 and 15.1.95 merely advises their clients that they can avail of the facility of the Notification No. 83/94 and 84/94 provided they strictly fulfill the conditions mentioned therein.These notifications are public documents. I do not find any malafide intent on the part of the assessee in advising their clients to avail of the facility of Notification No. 83/94 and 84/94 provided they fulfill all the conditions mentioned therein. The Bus Body Builders were not so naive and new to the business of Bus Body building that, merely on the basis of this letter, they availed of the Notification No. 83/94 and 84/94. It was obligatory on them to follow the advice of the letter correctly, if at all they wished so, which advised that they should avail of the facility only whe....