2019 (12) TMI 849

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....job work basis under the cover of Job work challan. Since M/s. Rivaa Exports Ltd.did not carry out any excisable activity, they weren't registered with Central Excise. On the investigation it was found that M/s. MGM Metalizers Ltd. carrying out the metalizing process which amounts to manufacture and no excise duty was being paid by M/s. MGM Metalizers. Therefore, a Show Cause Notice issued to M/s. MGM Metalizers Ltd. for demanding Excise Duty and a penalty under Rule 26(1) of Central Excise Rules, 2002 was also imposed upon Sh. Mathew C. Abraham, who is the Accounts Manager of the Principle M/s. Rivaa Exports Ltd. from where the polyester PET films were sent for job work. The adjudicating authority confirmed the duty demand against M/s. MGM....

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....is contrary to their own stand. He also submits that since there was a judgment of Hon'ble Supreme Court in the case of Metlex (supra) the job worker M/s. MGM following the said judgment paid the Service Tax of job work activity. This also show the bona fide of the job worker, therefore, penalty imposed on the present appellant is absolutely incorrect and illegal. He also submits that the appellant is an employee of Principle, there is no wrong doing on his part so long he supplied the goods under the cover of challan. Therefore, the penalty is not imposable under Rule 26. 3. Sh. Rakesh Kumar Bhashkar Learned Superintendant (Authorized Representative) appearing on behalf of the revenue reiterates the finding of the impugned order. He submi....