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TMI Blog2012 (12) TMI 1012X X X X Extracts X X X X X X X X Extracts X X X X ..... Limited at the price determined in terms the of pricing formula as specified in the agreement which is based on the cost of raw material including freight plus conversion cost at the rate of ₹ 9.50 per kilograms weight of the moulded furniture plus excise duty as applicable.The appellant were discharging duty liability on the plastic moulded furniture manufactured by them and supplied to M/s. Neelkamal Limited on the above mentioned contract price. The department was of the view that the appellant were the job workers and hence the provisions of Rule 10A of Central Excise Valuation (Determination of Price of Excisable Goods) Rules, 2000 will become applicable and they would be required to pay duty on the selling price of the moulded f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, the learned Counsel for the appellant, took us through agreement dated 2nd August, 2001 between appellant and M/s. Neelkamal Limited and submitted that perusal of this agreement prima facie indicate that the appellant is principal manufacturer and is not covered by the definition of job worker , as given in explanation to Rule 10A of Central Excise Valuation Rules, 2002. Learned Counsel for the appellant pleaded that from the various clauses of agreement, it is clear that the transactions between and the appellant and M/s. Neelkamal Limited were on principal to principal basis. She also submits that though plastic moulds were supplied by M/s. Neelkamal limited, and the appellant had taken cenvat credit of duty paid in respect of those m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of the Appellant company was that they shall act as job worker on behalf of the M/s. Neelkamal Limited. Ld. DR has drawn our attention to the clause 7,9,10,11(1) and 12 and 20 of the agreement which are reproduced as under:- 7. It is agreed between the Party of the First Part and the Party of the Second Part that the Party of the Second Part shall allow the Party of the First Part to supervise the quality of the said products manufactured by the Party of the Second Part so as to ensure that the same confirms to the quality, standards and specifications laid down by the Party of the First Part. The Party of the Second Part also expressly agree to appoint a Quality Assurance Inspector having sound knowledge about the qua ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the consistent quality standard as per the specifications and directions of the party of the First Part. For the same, the Party of Second Part shall rely upon the data sheet sent in writing to it, and shall not deviate from the same. 11. It is agreed between the Parties hereto that the price formula for the said products agreed between the parties in as follows:- (i) The pricing formula for the injection moulded Chairs that may be manufactured in accordance with the Agreement will be based on the per KILOGRAM basis of weight of the Chair or any other items that may be manufactured. 12. Not with standing what is contained herein to the contrary based on the aforesaid formula the Part ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods manufactured or produced by a job worker on behalf of principal manufacturer. Explanation to this Rule defines the term 'job worker' as a person engaged in the manufacture or production of goods on behalf of a principal manufacturer, from any inputs or goods supplied by the said principal manufacturer or by any other person authorised by him. Prima facie, we find that in terms of agreement, the appellant are required to purchase the raw materials for the manufacture of moulded furniture from the persons approved by M/s Neelkamal Limited and it is the appellant who make payment for the raw material. Therefore, it cannot be said that the raw materials have been supplied by M/s. Neelkamal Limited or their authorised persons. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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