2020 (1) TMI 194 - HC - Central Excise

Valuation - principal-job-worker relationship - appellant assessee as the principal sent raw materials to the other party to the agreement, the job worker which after completing the necessary job returned the manufactured goods to the appellant - HELD THAT - Now, the appellant cannot shrug off its responsibility of payment of excise duty by saying that the contract between them and the job worker was on principal to principal basis and since they manufactured the goods they had to pay the excise duty. There is no perversity in the fact finding process of the learned tribunal or in its order - Appeal dismissed.

Summary

The Calcutta High Court dismissed the appeal (CEXA No. 44 of 2019) and the stay application (GA No. 1504 of 2019) as no substantial question of law was found. The court upheld the decision that the relationship between the appellant and the job worker was one of principal and agent, and the appellant cannot avoid paying excise duty. The tribunal's judgment was considered valid with no perversity in the fact-finding process. No costs were awarded.