TaxTMI 
TaxTMI 
2026 (7) TMI 1278
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....4483320) on job-work basis for the principal manufacturer 'Sugan Engineering Private Limited' who supplied the 'Aluminium Ingots' as raw materials for such job work. The principal manufacturer in turn supply/sell the same to jute mills for subsequent use for making jute textiles. The Appellant did not pay central excise duty on such Baxter Flyer manufactured by them, by claiming the duty exemption available under N.F. No. 6/2006-CE dated 01.03.2006 superseded by 12/2012-CE dated 17.03.2012. 2.1. On the basis of the audit conducted on the records of the Appellant, the Additional Commissioner Central Excise, Audit-I Commissionerate, issued a SCN No. 09 dated 02.05.2016 for the period April, 2011 to December 2012, demanding CE duty of Rs. 6,72,997/- along with interest and equal penalty. The said Notice was issued on the allegation that the Appellant could not provide any evidence to show that they had fulfilled the condition No.2 specified in the said exemption Notification. As per condition 2 specified in relation to Sl. No.13 of the Notification 6/2006-CE dated 01.03.2006 superseded by Notification 12/2012-CE dated 17.03.2012, the Appellant is required to prove t....
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....is for the principal manufacturer 'Sugan Engineering Private Limited' who supplied the 'Aluminium Ingots' as raw materials for such job work; the principal manufacturer in turn supplied/sold the goods to jute mills for subsequent use for making jute textiles. They submit that the Aluminium Baxter Flyer have the exclusive ultimate use in the jute industry only. The appellant stresses that in the instant case, the Principal 'Sugan Engineering Private Limited' has got such items manufactured through the job worker and undertaken the process of heat treatment on the same; that subsequently, the 'Duly Dynamically Balanced, heat treated Baxter Flyers and after fitment of all essential inserts, were supplied to jute the mills. In support of this claim, the Appellant submitted Sample invoices of such supply made by the principal manufacturer to jute mills. 3.1. The Appellant also submits that such 'Baxter Flyer' manufactured by them can only be used in a jute mill for making jute textile. That in the present case, in the intermediate stage the principal has done some treatment and supplied the said goods for ultimate use in a jute mill. Thus, the Appe....
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.... manufactured Aluminium Baxter Flyer on job-work basis for the principal manufacturer 'Sugan Engineering Private Limited' who supplied the 'Aluminium Ingots' as raw materials for such job work. The principal manufacturer in turn supplied/sold the said goods to jute mills for subsequent use for making jute textiles. The Appellant claimed the duty exemption available under N.F. No. 6/2006-CE dated 01.03.2006 and 12/2012-CE dated 17.03.201 and did not pay central excise duty on such Baxter Flyer manufactured by them. The allegation of the Department is that the said exemption can be allowed only if it has been proved to the satisfaction of AC/DC that the scheduled goods had been cleared for use in jute mills for making jute textile and that in the present case, the goods cleared by the Appellant would be of no use in the jute mills unless they are subjected to some processing by the Principal Manufacturer. Hence, it is the Revenue's case that the goods cleared by the Appellant do not fit the condition of intended use in the jute mills. 6.1. Before going into the eligibility of the exemption, it is required to analyze what is a 'Baxter Flyer'. I find that 'Ba....
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.... dated 20.05.2012, can be allowed if it is proved to the satisfaction of AC/DC that the scheduled goods had been cleared for use in jute mills for making jute textiles. I find that the goods manufactured by the Appellant on job work and cleared to the principal can be only used in a Jute mill. In this case, the principal has undertaken some heat treatment process and supplied the said goods to Jute mills. Thus, I find that the goods cleared by the Appellant were ultimately used in a jute mill only. I find that in the condition no.2, nowhere it is mentioned that the goods should be used in a jute mill as it is or the goods manufactured should be supplied directly to a jute mill. The exemption is allowed if the goods cleared are intended for use in a jute mill. The words 'intended for use' is wide enough to cover the present situation where the goods manufactured by the appellant were ultimately used in a jute mill after undergoing some process of heat treatment etc at the hands of the principal. 6.5. Further, I find that the impugned order denied the exemption on the procedural ground that the appellant could not produce any document, evidencing that they had given any intimation....
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....ion notification is not available to the appellant, is not sustainable. Accordingly, I set aside the demand of central excise duty confirmed in the impugned order. As the duty demanded is not sustainable the question of demanding interest or imposing penalty does not arise and hence, the same also stand set aside. 7. In the result, I set aside the impugned order and allow the appeal filed by the Appellant with consequential relief, if any, as per law. (Order pronounced in the open court on 20.07.2026) ============= Document 1 MICE TAX REGISTRATICE 33.0.252315TEST TAX INVOICE ================= SELLER'S COPY Subject to Kolkata Jurisdiction \X INVOICE NO. SUC/C[X/014/12-13 Dated :24/04/2012 essers MADITYA TRANSCINX (P) LTD. (SAMNUGGAR JUTE FACTORY) Dr. 9, INDIA EXCHANGE PLACE, KOLKATA BUYER'S VATNO-19200292036 SUGAN ENGINEERING PRIVATE LIMITED MANUFACTURER OF BAUXTER TYPE ALLUMINIUM FLYER & JUTE MILLS SPARE PARTS IGO. OFFICE: JOA & B. DHARMATALLA ROAD IJSURI, HOWRAH - 711 107 S:2655-5402/5017/6948 : 033-2655-6781 FACTORY: 130A & B, DHARMATALLA ROAD. GEUSURI, HOWRAH - 711 107 Phone: 2655-5402/5017/6948 FAX :033-2655-6781 Interest will ....