TaxTMI 
TaxTMI 
2024 (11) TMI 121
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....g Pvt. Ltd., the assessee were engaged in the manufacture of 'Copper Wires' on job work basis for M/s. Neelgiri Electricals, who had supplied the raw materials i.e. copper rods to the assessee for manufacture of such 'Copper Wires'. The assessee was not paying Central Excise duty availing exemption under job work notification no.214/86-CE dated 25.03.1986 applicable to goods manufactured in a factory as a job work. M/s. Neelgiri Electricals were also availing area based exemption under Notification Nos.49 & 50/2003-CE both dated 10.06.2003. Since the exemption under said job work notification no.214/86-CE dated 25.03.1986 is available only to the goods manufactured as a job work and used further in the manufacture of final products on which....
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....icals was showing 'Nil' rate of duty and, therefore, they were under the impression that no duty is payable on the goods manufactured by them on job work basis for M/s. Neelgiri Electricals and also, they were not aware whether the goods manufactured by them on job work basis for M/s. Neelgiri Electricals were further used in the manufacture of export goods and hence, they contested the levy of excise duty along with interest and penalty. 6. Learned Authorised Representative submitted that Notification No.214/86 grants exemption only to the goods manufactured on job work basis, if used in the manufacture of the final products, on which duty of excise is payable in whole or part. In other words, exemption is available only when the duty i....
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....s of the Tribunal as well as of the Supreme Court. The condition of submitting an undertaking by the principal manufacturer or the supplier of the raw material as provided in the notification has been held to be a substantive condition and not merely a procedural one for the reason that it shifts the burden of the tax liability from the job worker to the supplier of raw materials or semi-finished goods. It has also been held that the above procedure set out in the notification is a pre-requisite and it being the mandate of law that unless such an undertaking is given, the benefit of exemption notification shall not be attracted and the job worker only is liable to discharge the duty liability at the time of clearance of the said goods from ....
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....er who undertakes to pay duty. 7.7 The intention of enactment of Notification (supra) was to shift the liability of payment of duty from job worker to the principal manufacturer under certain conditions as provided in the said notification. There is no blanket machinery provisions in the Central Excise law under which the liability to pay duty is transferred from the job work manufacturer to another person i.e. principal manufacturer. However when the principal manufacturer does not own up the liability to pay duty on finished goods, the provision of Notification No. 214/86-C.E., dated 25-3-1986 does not apply. In that case, it is the ultimate manufacturer i.e. the job worker who has to pay the duty. Following the procedure and con....