TaxTMI 
TaxTMI 
2019 (6) TMI 502
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....t and engaged in the manufacture of Fire Retardant Industrial Safety Garment. For the manufacture of these goods , they make use of Fire Retardant Fabric which is made by Coating the fabrics with certain specialised imported chemicals for providing fire retardant property. The appellant imported goods duty free under Notification No. 52/2003-CUS dated-March 31, 2003. The goods imported included the fire retardant chemicals. Since the appellants did not have the facility of weaving fabrics within their factory they applied for permission to the Jurisdictional Development Commissioner for job work by certain associated manufacturers including M/s. JCT Phagwara. The permission in terms of para 4 (iii) of the Notification No.52/2003-CUS was gra....
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....ty, Ld. Sr. Advocate appearing for the appellant. Revenue is represented by Shri Chattopadhyay, Ld. A.R. 4. The Ld. Sr. Advocate submitted that the impugned order demanding Customs duty and imposing penalty is not sustainable. His main arguments are summarised below: (i) He submitted that the appellant acted only within the terms of permission granted by the Development Commissioner for job work/special contract. The imported raw materials were sent to the job workers as per the terms of the permission and was covered by prescribed job working challans. He submitted that there was no instance where the processed fabrics were not received back from job workers. Nor is there any allegation that the imported raw materials were dive....
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....nd submitted that the definition of 'job work' as per the Notification No. 214/86 dated 25/3/1986 (which is similar to the definition of job work in the CENVAT Credit Rules during the period of dispute), will cover even those cases when some or most of the materials required for manufacture under job work are procured by the job workers themselves. iv) Finally he also submitted in the alternative that substantial part of the demand will be hit by limitation in as much as the entire activity was carried out by the appellant within the knowledge of the Department and within the terms of the permission duly granted by the Development Commissioner. The entire transaction, copies of the relevant documents were placed before the Departme....
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....m other notifications when the definition of this expression was not available in the relevant Rules. He submitted that in contrast, for the period in the present dispute, the definition of the term 'job work' is found in Rule 2 (n) of the CENVAT Credit Rules and this definition covers activity as job work only when raw materials are supplied and the job activity carried out on such raw materials. Finally, he also distinguished orders in the case of Abhinav Chemicals. He pointed out that the impugned raw materials in this case was supplied by the principal manufacturer and only the other subsidiary chemicals were procured by the job worker. 7. Heard both sides and perused the records carefully. 8. The Notification No. 52/03 provides f....
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.... It is the view taken by the lower authority that this will not be covered within the process of "job work" permitted by the Notification. 10. On the other hand, the claim of the appellant is that the activity of 'job work' will cover any activity carried out on what have been supplied by the appellant, even if other required materials are not supplied. Even if the basic raw materials such as fabric is not supplied by the appellant, the appellant's claim is that term 'job work' would cover it. 11. `The purchase of fabrics by applicant from job worker on which coating is done is evident from the invoices issued by the job workers to the appellant. The fact remains that if the fabrics had been sent to the appellant by job worker in term....
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.... 13. After considering the various case laws, we are of the view that the expression of 'job work' has been interpreted in liberal terms by the Tribunal and Hon'ble High Courts. In the present case, the fire retardant chemicals imported duty free has been supplied to the job workers. Such chemicals were coated on the fabrics manufactured by the job workers. But it is seen that the Fabrics are shown to have been purchased by the appellant as evidenced by the invoices issued for such fabrics. In respect of the main job worker, M/s. JCT Faguara, it is further seen that the procurement of Fabrics from JCT is also supported by issue of CT-3 certificates issued by the Jurisdictional Superintendent for the appellant. This clearly evidences the fa....