TaxTMI 
TaxTMI 
1991 (11) TMI 56
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.... based alloy wires are manufactured. The petitioners receive from the customers copper, copper scrap, brass scrap, zinc tin, etc. and the said material is melted in suitable compositions to make specific alloys. After casting of the said alloys, the petitioners carry out a number of other processes and finally draws the wires for delivery to the customers. Initially, the processes undertaken by the petitioners were not liable to payment of excise duty but after the introduction of Tariff Item No. 68 with effect from March 1, 1975, the processes undertaken by the petitioners attract payment of excise duty under residuary Item No. 68. 3. On April 30, 1975, the Central Government in exercise of powers conferred by sub-rule (1) of Rule 8 of ....
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.... 7, 1976 held that the process undertaken by the petitions amounts to manufacture and the finished goods, i.e. the wires and the material supplied by the customers do not remain the same product. The Assistant Collector felt that as the finished product is definitely a new and different product having different name and character, the petitioners are not entitled to benefit of exemption notification. The order passed by the Assistant Collector was confirmed in appeal by the Appellate Collector of Customs and Central Excise by order dated October 21, 1978. The petitioners carried revision before the Central Government but the revision ended in dismissal by order dated October 30, 1978. The Central Government accepted the claim of the petitio....
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....e metal supplied to the petitioners is moulded and thereafter the petitioners make specific alloys by mixture of suitable compositions. At this juncture, the raw material comes into existence and from this raw material by the process of moulding, rolling and cutting, the wires are drawn by the petitioners. It is impossible to accede to the submission of Shri Cama that the process of manufacture undertaken by the petitioners is merely a job work. The concept of job work as set out in explanation to the exemption notification means that the article is supplied to the job worker and the article is returned by the job worker after undertaking manufacturing process. In the present case, what is supplied is only the scrap material and the petitio....
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....market that would not deprive the job worker, of benefit of notification. For example, if a plain cloth is supplied to the job worker for printing or dyeing to convert the cloth into a saree, the mere fact that the cloth originally supplied is known by different names in the market cannot deprive the job worker of the benefit of the exemption notification. A person can claim to undertake process of job worker when the work done is such which does not totally alter the character of the original material supplied. In the present case, the material supplied was a scrap material and was moulded and specific alloys were manufactured. It is impossible to accept the submission that the process undertaken by melting and thereafter moulding, rolling....