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TMI Blog2024 (6) TMI 1178X X X X Extracts X X X X X X X X Extracts X X X X ..... er cannot be denied for procedural infractions, more so, when the Department was put to notice by way of seeking permission; it is not the fault of the principal manufacturer or the job-worker if there was delay in giving or denying the permission. It is opined that if the process undertaken by the job-worker/ appellant amounted to manufacture, duty requires to be demanded from the principal manufacturer and in no case, duty can be demanded from the job-worker. Appeal allowed. - MR. S. S. GARG, MEMBER (JUDICIAL) AND MR. P. ANJANI KUMAR, MEMBER (TECHNICAL) Present for the Appellant: Shri N.K. Sharma and Sri Kapil Gautam, Advocates Present for the Respondent: Sh. Shivam Syal, Authorized Representative ORDER The appellants, M/s Dalal Auto Engineering Industries, Faridabad, are holding Central Excise Registration; during the course of audit of the appellants records, it was found that the appellants had been receiving inputs like aluminum ingots from M/s Auto Ignition Ltd., Rudrapur, Uttrakhand and job-work challans for making aluminum dye-cast components; the principal manufacturer i.e M/s Auto Ignition Ltd. were sending aluminum ingots under Notification No.214/86; Auto Ignition Lt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion Ltd, the principal manufacturer, located in Rudrapur, Uttrakhand, are availing area-based exemption contained under Notification No.32/99. They have been sending aluminum ingots to the appellants to manufacture/ process to make dye-cast items on job-work basis; the appellants undertook the processes and returned back the material received to the principal manufacturers; the appellants were being paid only job charges. It is seen from the records that the principal manufacturer vide letter dated 23.05.2006 informed the jurisdictional Central Excise authorities that they would be sending inputs for further processing under Rule 16A of Central Excise Rules 2002 to nine job-workers mentioned therein; we find that the appellants name is mentioned at Sl. No.1. We also find that the appellants have continued to remind the Department vide letters dated 07.07.2006, 14.08.2006 and 25.08.2006; Department vide letter dated 19.07.2006 informed the principal manufacturers that in order to seek permission under Rule 16A, the principal manufacturer needs to obtain a Central Excise Registration; M/Auto Ignition Ltd. have obtained registration on 27.07.2006 accordingly; vide letter dated 20.09.2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Central excise Act, 1944, duties specified in the First Schedule and the Second Schedule to the Central Excise Tariff Act, 1985, to be levied on all excisable goods which are produced or manufactured in India. The term excisable Goods has been defined by clause (d) of Section 2 of the Central Excise Act, 1944, as goods specified in the First Schedule and Second Schedule to the Central Excise Tariff Act, 1985 as being subject to duty of excise and includes Sale. Further the word manufacture is defined vide clause (f) of Section 2 of the Central Excise Act, 1944, as manufacture includes any process i. Incidental or ancillary to the completion of a manufactured product ii. Which is specified in relation to any goods in the Section or Chapter notes of the First Schedule to the Central Excise Tariff Act, 1985 as amounting to manufacture or iii. Which, in relation to the goods specified in the Third Schedule involves packing or repacking of such goods in a unit container including the declaration or alteration of retain sale price on it or adoption of any other treatment on the goods to render the product marketable to the consumer. Therefore, when the goods are specified in the Schedul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... td. has held that Stock Transfer of inputs to job worker under invoices amounts to sale within the meaning of Section 2(h) of the Central Excise Act, 1944. In view of the said decision of the Hon ble Tribunal, the stock transfer of the said Aluminium extrusions/Profiles by M/s. AIEL to M/s. AWSL on job work challans amounts to sale and accordingly the said goods are saleable or marketable. Thus, it is established that the Aluminium Extrusions/Profiles manufactured by M/s. AIEL on job work basis and cleared to M/s. AWSL are marketable and the burden of proof that such goods are marketable which lies on the Department in view of the various decisions relied upon by the assesses is fulfilled. Thus, it is proved that the said Extrusions/Profiles, are specified in the First Schedule to the Central Excise Tariff Act, 1985 and are marketable. Hence, the said goods i.e. Aluminium Extrusions/Profiles are excisable goods produced/manufactured in India and accordingly duties of excise shall be levied in terms of Section 3 of the Central Excise Act, 1944. 14.1 It can be seen from the above reproduced portion of the impugned order of the Adjudicating Authority that the Adjudicating Authority ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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