2016 (6) TMI 467

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....reby Ld. Commissioner(Appeals) upheld the Orders-in-Original No. 03/02/AC/KDN/2011 dated 13/1/2011 and No. 13/06/V/2010/ADDL/SKR dated 15/1/2010. 2. The fact of the case is that the appellant is engaged in the manufacture of rubber product falling under Chapter Heading 40.16 of Schedule to the Central Excise Tariff Act, 1984. The appellant received bodies of valve under the cover of Annexure II challan under the job work provision laid down under erstwhile Rule 57F(3) of the Central Excise Rules, 1944 and Rule 4(5)(a) of Cenvat Credit Rules, 2004. The appellant carried out the process of bonding of rubber product manufactured by them and the processed goods returned to the principle supplier of valve bodies. The appellant are discharging....

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....2004 read with Notification No. 214/86-CE excise duty is not payable on the job work activity by the appellant. He submits that the very same issue is squarely covered by the Hon'ble Supreme Court Judgment in case International Auto Ltd Vs. CCE reported in [2005 (183)ELT 239 (SC)]. 4. Shri. D.K. Sinha, Ld. Asstt. Commissioner(A.R.) appearing on behalf of the Revenue reiterates the findings of the impugned order. He further submits that the appellant is admittedly discharged the excise duty on the job work goods therefore value of the entire goods processed by the appellant should be assessable value value of machines bodies supplied by the principle should be added in terms of Hon'ble Supreme Court Judgment in case of Ujagar PrintsLtd Vs....

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....m payment of excise duty on the job work activity subject to condition the principle supplier of raw material discharging the excise duty on their final product wherein job work goods is used. This fact is also not under dispute, in view of declaration filed by the principle supplier of the machine bodies. In the given fact, we are of the view that the job work activity since clearly covered under job work provisions, no duty is required to be paid on the job work activity in terms of Notification No. 214/86-CE. Accordingly value of machine bodies supplied by the principle manufacturer need not to be added or same should not be levied with excise duty. The issue in the present case is squarely covered by the judgment in case of Internationa....