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TMI Blog2013 (12) TMI 171X X X X Extracts X X X X X X X X Extracts X X X X ..... ers 51 and 58 are notified final products - if racks and trolleys were used in or in relation to the manufacture of goods falling under Chapter 51 and 58, the appellant would be eligible for the benefit of the aforesaid Notification – Thus, the assessee is eligible for the benefit of exemption under Notification 67/95 - Decided in favour of Assessee. - E/3343/2004 - Final Order No. A/848/2013-WZB/C-II(EB) - Dated:- 27-9-2013 - P R Chandrasekharan And Anil Choudhary, JJ. For the Appellant : Shri Prasad Paranjape, Adv. For the Respondent : Dr B S Meena, Addl. Commissioner (AR) PER : P R Chandrasekharan The appeal is directed Order-in-Appeal No. GWL/655/2004 dated 30/09/2004 passed by the Commissioner of Central Excise(Appeals), Gwalior. 2. The appellant, M/s. Raymond Ltd., are manufacturers of excisable goods falling under Chapter 51, 55 and 58 of the First Schedule to the Central Excise Tariff Act, 1985. During the visit of the officers to the appellant-factory, it was discovered that the appellant had got fabricated racks and trolleys falling under Central Excise Heading No. 9403 from fabrication within their own factory premises out of the raw materials supplie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nufacture of the final products. Racks and trolleys fall under Heading 9403 and they fall within the category of inputs' as defined in the said Notification. Similarly, the appellant also, manufactures goods falling under Chapters 51 and 58 and the said Chapters are notified as final products in the said Notification. Therefore, the benefit of duty exemption is available to the appellant. Reliance is placed on the decision of the hon'ble apex Court in the case of Collector of Central Excise, Baroda vs. M.M.Khambhatwala 1996 (84) ELT 1616 (SC) wherein it was held that, if the goods are produced out of the raw materials supplied by others, who paid wages, then the persons actually undertaking the manufacturing activity should be deemed as manufacturer' and not the raw material supplier. Similarly, in the case of Diamond Cements Ltd. vs. Commissioner of Central Excise, Bhopal 2012 (283) ELT 226, it was held that if the job-worker has undertaken manufacture out of the raw materials supplied by others, the job-worker is the manufacturer and not the raw materials supplier. Similarly, in the case of Voltas Limited vs. Commissioner of Central Excise, Guntur 2002 (144) ELT 108 (Tri-Del) w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rials supplier but at the house-holds where the ladies produced the articles out of raw materials supplied by M/s. M.M. Khambhatwala. There was no supervision over the manufacturing activity by the raw material supplier. In that context, it was held that the house-hold ladies have to be treated as manufacturers' and they cannot be considered as hired labourers'. However, those are not the facts obtaining in the present case. In the present case, not only the raw materials and consumables were supplied by the appellant but the fabrication was carried out as per the instructions of the appellant in his premises. Thus, there was control over the activities of the fabricators by the appellant. Similarly, in the case of Voltas Ltd. (cited supra), the fabrication work of the air conditioning system was undertaken at the site of the building/civil structure and the structures so fabricated were part of the building and hence immovable goods. Since the goods fabricated were non-excisable, the demands were set aside. These are not the facts obtaining in the present case. The appellant have manufactured racks, and trolleys classifiable under Heading 9403 of the Central Excise Tariff. Furth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court held that the definition of manufacturer' does not refer to the ownership of the factory where the goods are manufactured. It covers anyone who employs hired labour in the production and manufacture of goods. The expression "who manufactures, or engages in their production or manufacture on his own account would also apply to a person who hires the labour and the person who hires the labour has to be treated as the manufacturer. In the present case, the trolleys and racks have been fabricated on account of the appellant. They have supplied the raw materials, consumables, fuels, etc. required for the manufacture and the fabrication work has been undertaken in the appellant's own factory. The fabricators merely supplied labour for undertaking the fabrication work. Therefore, it has to be held that the appellants are the manufacturers of the impugned goods and not the fabricators. Accordingly, we reject the contention of the appellant that they are not the manufacturers of racks and trolleys but the fabricators who actually undertook the fabrication work are the manufacturers. 5.4 As regards, the second contention of the assessee with respect to the eligibility to benefit o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i) goods classifiable under sub-heading Nos. 2710.11, 2710.12, 2710.13 or 2710.19 (except Natural gasoline liquid) of the Schedule to the said Act; (iv) high speed diesel oil classifiable under heading No. 27.10 of the Schedule to the said Act. All goods falling within the Schedule to the Central Excise Tariff Act, 1985 (5 of 1986), other than the following, namely, - (i) goods classifiable under any heading of Chapter 24 of the Schedule to the said Act; (ii) goods classifiable under heading Nos. 36.05 or 37.06 of the Schedule to the said Act; (iii) woven fabrics classifiable under Chapter 52 or Chapter 54 or Chapter 55 of the Schedule to the said Act. The racks and trolleys manufactured by the appellant is held to be classifiable under Heading 9403 of the Central Excise Tariff which is one of the inputs specified in the said Notification. It is also a fact that the appellants are manufacturing goods falling under Chapter 51, 55 and 58 of the Central Excise Tariff. In the said Notification only Chapter 55 is excluded but goods falling under Chapters 51 and 58 are notified final products. It is not the case of the Revenue that the racks and trolleys which the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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