2006 (9) TMI 337

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..... not installed any plant and machinery for manufacturing the excisable goods, though they were availing credit on the raw materials purchased and then utilizing the same towards clearance of goods so got manufactured by them from various job workers under the procedure and benefit of Exemption Notification No. 214/86 and they discharge duty liability from the account current in addition to payment on the credit. 2. A Notice was issued on 31-1-05 inter alia calling upon the appellants as to why an amount of Rs. 3,23,46,680/- should not be demanded and recovered under the provisions of Rule 12 of the Cenvat Credit Rules, 2004 read with Section 11A of the Central Excise Act, 1944 that Unit No. V was not a factory and hence the appellants .....

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..... remises, including the precincts thereof, wherein or in any part of which excisable goods other than salt are manufactured, or wherein or in any part of which any manufacturing process connected with the production of these goods is being carried on or is ordinarily earned on;" The definition of 'manufacture' is defined in Section 2(f) of the Act, which reads as under : (f) "manufacture" includes any process - (i)      incidental or ancillary to the completion of a manufactured product; (ii)     which is specified in relation to any goods in the section or Chapter notes of The First Schedule to the Central Excise Tariff Act, 1985 (5 of 1986) as amounting to manufacture; or (iii) &n .....

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..... n back to the original supplier of the raw material. Initially given the undertaking to comply with the duty requirements, if any, arising during the job work. The job worker is in these circumstances, absolved from payment of any duty on such manufacturing activities, even if they are covered by the levy under the provisions of the Central Excise Act, since duty is admittedly discharged by the person who has sent the goods on job work. 5. If we consider the provisions of the rules the facility to obtain on job work and movement of the inputs directly from the suppliers or from the person who has availed the credit, and thereafter removed the inputs for job work or after processing through the job worker enabling provision which permi .....

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