TaxTMI 
TaxTMI 
1984 (11) TMI 64
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....Act, 1944 (1 of 1944) manufactured in a factory as a job work so much of the duty of excise leviable thereon as is in excess of the duty calculated on the basis of the amount charged for the job work. Explanation. - For the purposes of the notification, the expression, "job work" shall mean such items of work where an article intended to undergo manufacturing process is supplied to the job worker and that article is returned by the job worker to the supplier after the article has undergone the intended manufacturing process on charging only for the job work done by him." The petitioners received from M/s. Coates of India Ltd. pigments, oils and toners. They subjected them to a manufacturing process. The rotary news ink which was so manufa....
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....ected the application for the period 1st April, 1979 to 7th September, 1980 upon the basis that the claim therein had been made after the expiry of six months from the payment of duty and it was time-barred under Rule 11 of the Central Excise Rules. In regard to the application for the period 8th September, 1980 to 6th March, 1981 the Assistant Collector stated that it appeared that the value of raw material for manufacture of the final product was required to be included and hence the petitioners were not entitled to exemption under the notification. 4. This petition impugns the order rejecting the classification list and the orders rejecting the refund applications. 5. My attention was drawn to a Trade Notice issued by the Excise author....
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....text of the excise law, that, unless a new article known to trade emerges after the manufacturing process in completed, excise duty cannot be levied at all. That is the very basis of taxation under the excise law. In order to exempt job workers from payment of duty except to the extent of duty on the job work charges, this Explanation to the Notification makes it clear that the article which undergoes manufacturing process at the hands of the job worker, must be supplied by the customer and the only thing which the job worker has to do is to subject that article supplied by the customer to the intended manufacturing process. The final result after the manufacturing process is completed has to be returned to the customer and the job worker o....