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TMI Blog2007 (3) TMI 56X X X X Extracts X X X X X X X X Extracts X X X X ..... rkers) in respect of "Air heater block assembly" manufactured by them on job work basis and supplied to M/s. BHEL during the relevant periods. After examining the records and hearing both sides, we note that M/s. BHEL supplied MS plates and pipes required for the manufacture of the above product, to the appellants and that the latter undertook the manufacture by using certain materials of theirs such as grinding wheels, oxygen and acetylene gases, bolts and nuts, paints etc. The product so manufactured by the job worker was cleared to the principal manufacturers under Notification No. 214/86 ibid. The lower authorities took the view that materials not supplied by the principal manufacturer were used by the job worker in the manufacture of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e enough to encompass within its ambit use of some materials other than those supplied by the principal manufacturer, for the completion of the job work. On the other hand, learned SDR submits that the appellate Commissioner had relied on a decision of the Tribunal which was subsequently affirmed by the Apex Court. It is pointed out that the Tribunal's decision in Desh Rolling Mills (supra) was affirmed in Kartar Rolling Mills v. Commissioner of Central Excise, New Delhi, 2006 (197) E.L.T. 151 (S.C.). In his rejoinder, learned Consultant submits that the issue settled by the Tribunal and the Apex Court in the case of Desh Rolling Mills (supra) was different from the issue presently arising for consideration in the present case. It is submit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... viz, grinding wheels, nuts and bolts, paints, oxygen and acetylene gases, for undertaking the job work. Most of these materials were consumed in the process. The nuts and bolts and paints, among these materials, nonetheless, formed part of the manufactured product. The question to be decided upon is whether these materials used by the job worker from their own source would hit their claim of exemption under Notification No. 214/86-C.E. in respect of the product manufactured by them and supplied to the principal ' manufacturer. The remand order (Order No. 92/93 in Appeal No. E/31/93/MAS) took the view that the definition of 'job work' given in the Explanation to the Notification did not preclude use of such is materials by the job worker fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r and used for the job work would qualify to be 'raw materials' within the meaning of this term used in the Explanation to Notification No. 214/86 ibid. In other words, a job worker operating under the above Notification was not precluded from using any material other than raw materials (vide Explanation) supplied by the principal manufacturer, for the purpose of undertaking the job work. We have found that the raw materials required for the product were supplied by the principal manufacturer and that the materials independently sourced by the job worker were not 'raw materials'. In this view of the matter, we set aside the impugned orders and allow these appeals, with consequential relief to the appellants. (Dictated and pronounced in op ..... X X X X Extracts X X X X X X X X Extracts X X X X
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