2002 (1) TMI 1355

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....red on payment of duty to various job workers who then used to carry out further processes to convert the rough castings into machined castings as required by the Customs; that the adjudicating authority had demanded the duty on the machined castings from the appellants on the ground that after the machined castings were received back, they were giving heat treatment to the same and supplying to the customers after packing and also that their Engineers were supervising the entire work in the job workers' premises. The ld. Advocate further submitted that the statements of the job workers clearly show that they were independent contractors and not hired labours of the Appellant; that one job worker M/s. Nitin Engineering's Works has even the ....

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....v. CCE, Nagpur - 1995 (77) E.L.T. 705 (Tribunal) wherein it was held that the subsequent machining carried out at the premises of the sub-contractors or job worker resulting in an activity amounting to further manufacture would have to be deemed as having been carried out by the job worker as an independent manufacturer and liable for payment of duty, if any, attached on goods, would be that of the job workers; that the ratio of this decision squarely applies to the facts of the present matter as in the said case the castings were machined by the sub contractor at their work place before they were delivered to the customers. The ld. Counsel pointed out that in the Paramount Centrispun case the appellants were collecting payments for the mac....

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....machining process were undertaken by the job worker whom the rough castings were sent after payment of appropriate duty. The appellants have been treated to be manufacturer of machined castings on the ground that the machining activities were done by the job workers under the overall supervision of the appellants and job workers are paid only the job charges which makes them hired labour of the appellants. The Commissioner has also given his finding that the orders placed on the appellants were for machined casting and from this conclusions has been drawn that they were getting the machined goods packed after further processing namely heat treatment for ultimate supply to the customers. A perusal of the statements of the job workers does no....