2017 (2) TMI 480

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....bber without payment of duty. Accordingly the adjudicating authority vide order-in-original No. 02/COMMR/GOA/CX/2001 dt.31.1.2001 confirmed the demand of duty on both the appellants and imposed penalties. Being aggrieved by the said order-in-original, the appellant filed appeals before the Tribunal. On the ground that the intermediate goods i.e. Compounded Rubber and Cushion Rubber manufactured by M/s. Emkay Elastomers was sent to M/s. Kayji Polymers (India) for job work purpose thereafter the job work goods i.e. Trade Rubber after manufactured by the M/s. Kayji Polymers (India)  returned back to M/s. Emkay Elastomers and in turn M/s. Emkay Elastomers has cleared the Tread Rubber on payment of appropriate excise duty. Therefore the ent....

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....ed goods by Emkay to Kayji and return of processed goods by Kayji to Emkay and subsequently clearance of the final product by Emkay is covered under the job work procedure as permitted under erstwhile Rule 57F (2/4) of Central Excise Rules, 1944. He fairly accept that the proper procedure was not followed such as giving intimation to the department and issuance of prescribed challan for job work under Rule 57F (2/4) of Central Excise Rules, 1944, however the entire transaction is permitted under the law. Though the prescribed challan was not  issued but the internal pre-printed challan for movement of the goods were issued and the same was produced before the Commissioner. It is his submission that since after the job work the final pr....

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....sant with the requirement of the procedure and they were under the bonafide belief that the procedure followed by them was correct. 4. A statement showing movement of finished goods from M/s. Enkay to M/s. Kayji Polymers (India) and from M/s. Kayji Polymers (India) to M/s. Enkay duly supported by certificates from Chartered accountant, has been produced. We find that these statements are required to be verified by the lower authorities before duty demands on unaccounted intermediate goods not received back by M/s. Enkay and/or Thread Rubber manufactured and not accounted by M/s. Kayji Polymers (India) and to arrive at for the purpose of demand of duties thereto. The matter is, therefore, required to be remitted back for reconsideration of....

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....n clearance of rubber compound and cushion compound nor the duty on tread rubber from Kayji can be demanded. In the over all case, we find that the above discussed transaction is established subject to verification by the adjudicating authority than the only lapse is the procedural lapse for movement of goods for job worker however the job work is permissible under Rule 57F (2/4) of Central Excise Rules 1944 and/or notification No. 214/86-CE. The only condition is that the final product is cleared by the principal manufacturer on payment of excise duty. In such case neither excise duty is payable on the removal of semi processed goods by the principal supplier nor on the job work goods manufactured by job worker. In the present case, the ap....