TaxTMI 
TaxTMI 
2019 (8) TMI 954
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....e set of facts and circumstances. M/s ABC Technologies (hereinafter referred to as M/s ABC) are engaged in the manufacture of various sheet metal parts, mechanized components, laser cutting, bending and machine on job work for others and is registered with the Central Excise Department for payment of duty of excise. They are regularly discharging their duty liabilities. Shri V.K. Gupta is the partner in the said M/s ABC. M/s Siddhant Engineering is engaged in the manufacture of couplers and kiosks and were availing the benefit of small scale exemption Notification No. 8/2003 and as such are not registered with the Central Excise Department. Shri V.K. Gupta and Shri S.P. Gupta are the directors in the said M/s Siddhant Engineering. 2. ....
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....eering, process of manufacture of couplers is as follows: Raw material is procured in the form of round rods of different diameters; Parting/cutting them to the desired length on bandsaw machines; Drilling theses blanks from both sides on lathe machines; Threading in the drilled holes on both sides on lathe/CNC turning machines; Packing in boxes. The Revenue has clubbed the clearance of M/s Siddanth with M/s ABC on the grounds that no manufacturing activity had taken place in the factory premises of Siddanth; one CNC machine required for threading of couplers was installed in the factory of ABC; threading of couplers on CNC machine was done in the factory of M/s ABC; packing material and packed couplers of Siddhant found i....
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....security reasons and lack of space, the CNC machine shifted to Siddhant in April, 2013. Office records were also shifted there. Therefore, all the operations for manufacture of couplers were done by Siddhant in its factory till March, 2013. 4. Threading on the couplers is also done on lathe machines as the CNC machine was purchased in April, 2012. After purchase of CNC machine, threading was done on both the machines in the factory of Siddhant till March, 2013. 5. The sole ground taken for demand that the CNC machine was installed in the factory of M/s ABC and threading done in its premises, is therefore, not valid for the period upto April, 2012, prior to the purchase of CNC machine in April, 2012. 6. From April,....
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.... have been taken in terms of value and not units. The unit cost of power increases with every year and for the same production, the value of power consumed will increase each year. Further, turnover includes the job charges also in which the value of power consumed will be much more than the manufactured goods, as it will not have any raw material cost. 10. There was no allegation or any evidence of any financial integration. The working of both the entities was separated right from the stage of procurement of raw material, machinery required, labour employed, manufacturing operations, sale of finished goods and receipt of the sale proceeds. 11. No evidence that the threading operations on CNC machine were done before Apri....
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....f raw material, labour, machinery required where the goods in question were manufactured. 4. CNC machine found in the premises of ABC was the property of Siddhant which was purchased vide invoice dt. 9.4.12 and initially installed in the factory of Siddhant. Fixed assets register with CA certificate was produced before the Commissioner. This conclusively proves that the CNC machine was the property of M/s Siddhant. Further, the threading operations were done on lather machines before the purchase of CNC machine and after that on both the machines. 5. The sole ground taken for demand that the CNC machine was installed in the factory of M/s ABC and threading done in its premises, is therefore, not valid for the period upto A....
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.... 9. M/s Siddhant was within its right to send the goods for job work to ABC in terms of notification no. 83/94. The job charges were duly paid. Even a principal can remove the goods after job work from the premises of the job worker as provided in rule 4(6) of Cenvat Credit Rules. In the present case, M/s Siddhant was not registered with the department and as such, permissions etc. as required in case of registered manufacturer were not applicable. Further, non filing of declarations or other procedural lapses cannot be made a ground to deny substantive benefit. 10. There was no allegation or any evidence of any financial integration. The working of both the entitities was separate right from the stage of procurement of raw m....