9911796707
TMI Blog2009 (4) TMI 169X X X X Extracts X X X X X X X X Extracts X X X X ..... supervised the individual spinners. The appellant’s contention that they did not supervise and could not supervise the production by individual spinners, is also borne by the fact that the spinners are located in different villages and it is, therefore, not possible for the appellants to exercise any control or supervision over the production of yarn by the spinners. – demand set aisde. - E/212/2002 and E/1245-1246/2004 - 414-416/2009 - Dated:- 2-4-2009 - Ms. Jyoti Balasundaram, Vice-President and Shri P. Karthikeyan, Member (T) REPRESENTED BY : S/Shri N. Sriprakash and Savith V. Gopal, Advocates, for the Appellant. Shri R.P. Meena, SDR, for the Respondent. [Order per : Jyoti Balasundaram, Vice-President]. - All the three a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enalty. The demand was confirmed by the Commissioner of Central Excise, together with interest, and a penalty of amount equal to duty was imposed. This has given rise to Appeal No. E/212/2002. 3. Subsequent show cause notices were issued raising duty demands of Rs. 2,91,104/- on yarn cleared during October, 2001 to February, 2002 and Rs. 4,99,605/- on yarn cleared between March, 2002 to 22-8-2002, which demands were confirmed together with interest and imposition of penalty, by the adjudicating authority vide Orders-in-Original dated 31-12-2003 and upheld by the Commissioner (Appeals) vide Order-in-Appeal dated 31-8-2004 - the demand of Rs. 2,91,104/- is challenged in Appeal No. E/1245/2004 and the demand of Rs. 4,99,605/- is the subject ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... od in accordance with the said practice: Provided that the benefit under this notification shall not be admissible unless the unit claiming benefit in terms of this notification reverse the input credit, if any taken in respect of inputs used in manufacture of such goods. 1st March, 1994 to 28th February, 2002 The plea of the appellants is that independent of the issue of the above notification by which the assessees are not required to discharge duty liability on the yarn, they are not the manufacturers of the yarn and individual spinners are independent job workers who are the manufacturers. 5. The four factors relied upon in the first show-cause notice to hold the appellants as the manufacturers of the blended yarn are a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eeds of the workers. The Incentive constitutes 10% of the Wages of the Artisans contributed by the Sangh, which is paid once in a year before Diwali. In effect, the labour is hired in return for the wages best it can be described as Hired Labour." The Commissioner has held that the appellants are the manufacturers for the reasons that the dutiable Roving ends are the Charkas was supplied by them to individuals for weaving into Poly Vastra, that right from the purchase of raw material until the stage of Poly Vastra, the ownership continuously vested with the appellants who were in overall control of purchase of raw material, production, supply of charkas for spinning yarn and for further manufacture of Poly Vastra. However, as rightly cont ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efore, not possible for the appellants to exercise any control or supervision over the production of yarn by the spinners. 6. The wages for the individual spinners are determined by KVIC and not by the appellants. The appellants have established Artisans Welfare Fund earmarked for the welfare of the workers, as per the requirements of the Khadi Certification Rules. 7. The Poly Vastra Certification Rules (hereinafter referred to as the Rules) establish that the appellants did not have or exercise any control or supervision over the artisans. On the contrary, their activities are regulated by the Rules — Rule 2(1) of the Rules makes it clear that any violation thereof would result in suspension or cancellation of the certificate issued to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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