TaxTMI 
TaxTMI 
2019 (8) TMI 956
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....onfirmed the duty liability of Rs. 8,74,639/- on the 'job-work' undertaken by M/s Just Exports for M/s Just Textiles Limited who were also imposed with penalty under rule 26 of Central Excise Rules, 2002. It would appear that M/s Just Exports Pvt Ltd had supplied 'unprocessed gray fabrics' to M/s Just Textiles Ltd which was cleared after processing by the 'job-worker' upon payment of duty on assessable value comprising cost of unprocessed fabrics and job-charges. It is alleged by the central excise authorities that the principal manufacturer was bound to pay the duties of excise under rule 12B of Central Excise Rules, 2002 as 'job-worker', who was supposed to exercise the option in terms of the same rule, had failed to do so. The processed ....
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....he other provisions of these rules. In such a case the provisions of these rules shall not apply to the said person. The job worker, may, at his option, authorize the said person to, on his behalf as his agent, maintain accounts, pay duty, prepare invoice and comply with any of the provisions of these rule except that of rule 9: Provided further that the job worker may make an option to undertake the activities mentioned in this sub-rule as an agent or person authorized by the said person and in such a case, the said job worker shall be deemed to be the said person. (2) If the said person desires clearance of excisable goods for home consumption or for exports from the premises of the job worker, he shall pay duty on such excisable goo....
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.... goods referred to in sub-rule (3) or his authorized representative, as the case may be. (b) The document for the movement of goods from the said person to the job worker shall contain the following information, - (i) the name, address and registration number of the said person; (ii) the Range, Division and the Commissionerate with whom the said person is registered; (iii) the description, quantity (in terms of kg. /m/ Sq. m) and the value of the goods being sent for the job work; (iv) the date of dispatch of such goods; and (v) the name and address of the job worker. (c) The document pertaining to movement of goods from a job worker to another job worker or from a job worker to the said person shall contain, - (i) the name ....
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....of duty on such goods shall be rate in force on date of removal of such goods from the premises of the job worker. No excisable goods shall be removed except under an invoice: Provided that the goods may be sent under a proforma invoice in terms of proviso to sub rule (1) of rule 11.' 2. According to the Learned Authorised Representative, abstaining by M/s Just Exports Pvt Ltd, under rule 12B of Central Excise Rules 2002, renders them to be the 'said person' therein and that, though M/s Just Textiles Limited was already registered as 'job-worker' before the said rule was incorporated, failure to obtain registration would disentitle canvasing of that status for M/s Just Textiles Ltd. 3. Learned Counsel for the appellants placed reliance ....
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....issued, we are of the opinion that in terms of Rule 12B a trader or any person can purchase raw materials and get textile goods manufactured from a job worker. In all such cases, the job worker is considered as a manufacturer. It is also well-settled that the supplier of raw material is not the actual manufacturer and the job worker is the actual manufacturer. What Rule 12B provides is that it enables the supplier of raw materials to comply with all the Central Excise formalities for the goods manufactured by the job worker. In other words, the trader or the person who supplies raw material should discharge the duty liability on the goods manufactured by the job worker. The Board has issued a Circular on the valuation in the context of Rule....
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.... major demand amounting to Rs. 46/- lakh cannot be sustained.' was approved by Hon'ble Supreme Court. 4. In the pertinent rule, we find that there is no prescription of form for exercise of option which would create 'said person' for undertaking the discharge of duty liability. Moreover, deemed exercise of option cannot be a ground for procedural infringements. Having accepted the duty liability discharged by the 'job-worker', it is not open to the central excise authorities to take an entirely different stand to fasten liability for the same duty paid goods on the principal manufacturer. Under rule 12B of Central Excise Rules, 2002, the 'said person' can only be one or the other and, if the stand of the lower authority is accepted, we fi....