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TMI Blog2012 (6) TMI 334X X X X Extracts X X X X X X X X Extracts X X X X ..... MMTC and MKS Holding BV, Amsterdam, Netherlands, initially sought a ruling on the following four questions: 1 Whether the process proposed to be employed by the Applicant amounts to manufacture or job work under the Central Excise Law? 2 If it amounts to 'manufacture', would it be subject to the levy of Central Excise Duty in terms of the Central Excise Act, 1944 and the Central Excise Tariff Act, 1985? 3 If so, what would be the standard and the effective rate of duty? 4 Where gold / silver products are manufactured with customer's brand name, on what value is excise duty, if any, payable? 2. The application was admitted for a ruling, vide the Authority‟s order dated 26th August, 2011. 3. While the case was pending, the Union ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of metal, melting of the gold or silver, cold rolling, blanking, pickling and polishing, stamping with the aid of dies made as per designs agreed with their customers and lacquering and packing. In short, what they take in is precious metals in raw (bullion) form and what they produce is finished articles, such as medallions and articles of jewelry etc, in marketable form. 5. As some of the facts were not entirely clear, a joint inspection by the department and the applicant‟s representative was undertaken and the inspection report based on observations was submitted to the Authority by learned AR vide his letter dated 30th January, 2011. According to the inspection report, the Revenue representatives, after studying the process, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acture" or "job work" - the apparent underlying premise being that if it is one then it cannot be the other. This premise appears to us to be unfounded. It cannot be that where an activity is undertaken on job work basis, it would be precluded from being considered as manufacturing. It is not as though the two are mutually exclusive. If in a given transaction, the raw material is supplied by the customer and the applicant charges only its making charges, it could well be a case of manufacture on job work basis. It is, therefore, our understanding that what the question seeks an answer to is whether the activities amount to „manufacture‟. It is on that basis we are ruling on the questions. 9. Accordingly, we rule as follows: (a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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