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TMI Blog2010 (3) TMI 618X X X X Extracts X X X X X X X X Extracts X X X X ..... o, Member (J) and P. Karthikeyan, Member (T) Shri H.B. Negi, SDR, for the Appellant. Shri Aqeel Sheerazi, Advocate, for the Respondent. [Order per : P.G. Chacko, Member (J)]. - This appeal is by the Revenue, aggrieved by an order of the Commissioner (Appeals) allowing the benefit of Notification No. 214/86-C.E., dated 25-3-1986 to the respondent. After examining the records and hearing both sides, we note that the (respondent was engaged in the job work of manufacturing paper-covered copper strips for principal manufacturers like M/s. BHEL during the period of dispute. The principal manufacturers supplied copper bars/rods/strips to the respondent and the latter manufactured paper-covered copper strips out of such raw materials ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e denied and the demand of duty resisted. In adjudication of this dispute, the original authority confirmed the demand of duty against the assessee and imposed on them a penalty. In an appeal filed by the assessee, the learned Commissioner (Appeals) not only held in favour of the assessee on merits but also found the demand to be time-barred. The present appeal of the Revenue is directed against the appellate Commissioner's decision. 2. We have heard the learned SDR for the appellant and the learned counsel for the respondent (assessee). The learned SDR has reiterated the grounds of this appeal. The case of the Revenue is that the processes undertaken by the respondent on the raw materials supplied by the principal manufacturers exceeded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... abled a job worker to clear the job-worked goods without payment of duty, to the principal manufacturer, who would clear on payment of duty the final products manufactured out of the job-worked goods received from the job worker. The bone of contention between the parties to the present case is the scope of "job work". This expression was defined in Notification 214/86-C.E. vide the Explanation thereto, which reads as under :- "Explanation. - For the purposes of this notification, the expression "job work" means processing of working upon of raw materials or semi-finished goods supplied to the job worker, so as to complete a part or whole of the process resulting in the manufacture or finishing of an article or any operation which is esse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch as they also used considerable amount of paper, varnishes etc. procured by themselves, in the process. As rightly pointed out by the learned counsel, it is on record that the cost of such materials (paper, varnishes etc.) incurred by the respondent was subsequently recovered from the principal manufacturers. In the result, the materials procured by the respondent and used in the job work are virtually on the same footing as the raw materials supplied free of cost by the principal manufacturers. In other words, the fact mentioned by the learned SDR would not detract from the nature of 'job work' involved in the process undertaken by the respondent. The learned counsel has also relied on certain decisions of this Tribunal with regard to th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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