9911796707
TMI Blog2020 (5) TMI 150X X X X Extracts X X X X X X X X Extracts X X X X ..... duty on the finished goods when manufacturing activity is carried out using job work facility. Since the appellants are doing part of the manufacturing activity, it cannot be said that the activity undertaken by them is service which is exempted under Notification No.25/2012-ST. Even if the process carried out by the appellant does not amount to manufacture , when N/N. 214/86 comes into application it has to be understood that the job worker is undertaking part of the manufacturing activity on behalf of the principal manufacturer. The Tribunal in the case of M/S. SHREE ORGANO CHEMICALS AHMEDABAD P. LTD VERSUS COMMISSIONER OF CENTRAL EXCISE ST, AHMEDABAD [ 2019 (2) TMI 852 - CESTAT AHMEDABAD] had occasion to consider a similar situ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the matter. She submitted that the appellants were engaged as job worker by the principal manufacturer for doing the work of machining operations on castings. The principal manufacturer cleared the semi-finished goods vide challans under Rule 4 (5) (a) of Central Excise Rule 2002 to them and after job work, the appellants returned the goods to the principal manufacturer to be used in further manufacture. It is submitted by her that since the appellant has manufactured goods as a job worker for the principal manufacturer under Notification No.214/86, the activity undertaken by the appellant has to be considered as part of the manufacturing activity carried out by principal manufacturer. When goods have suffered central excise duty as per par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 852 CESTAT Ahmedabad and Precision Metals Vs CCE Raigad - 2016 (4) TMI 457 CESTAT Mumbai. 3. Ld.A.R Shri Vikas Jhajhariya appeared for the department. He submitted that activity of the appellant in doing the machining operations on the castings does not amount to manufacture . As per Sl.No.30 of notification No.25/2012-ST, the operations carried out on an intermediate product as job worker is exempted from levy of service tax. He referred to the relevant part of notification as under : 30. Carrying out an intermediate production process as job work in relation to (a) agriculture, printing or textile processing; (b) cut and polished diamonds and gemstones; or plain and studded jewellery of gold and other precious metals, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emoved to the job worker under Notification No.214/86, it can be understood that the activity undertaken by the appellant is also part of manufacturing activity. The appellant carried out machining work such as drilling, milling, reaming, boring, tapping etc. on the castings and thereafter returned them to the principal manufacturer. After completion of further processes on the semi finished goods, the principal manufacturer cleared such goods by paying Central Excise duty. When the semi finished gods are received by the job worker under challans as per Rule 4 (5) (a), it can be understood that the activity undertaken by the appellant is also part of the manufacturing activity. In other words, the job worker manufactures on behalf of the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
