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TMI Blog2024 (9) TMI 1078X X X X Extracts X X X X X X X X Extracts X X X X ..... ectroplating process on gravure printing cylinders received from different manufactures and had collected jobcharges from them. The principal manufacturers subsequently use these chrome plated gravure printing cylinders for their printing machinery as capital goods and no Central Excise duty was paid on the same by them. Department was of the opinion that the appellant are liable to pay Service Tax as job-work is a service under the category of Business Auxiliary Service Accordingly, show cause notices dated 07.06.2017 and 23.07.2018 were issued to the appellant demanding Service Tax on the job-charges collected by the appellant from their customers. The said show cause notices were adjudicated vide the impugned orders, wherein the total de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubmits that it is not necessary the job work goods should directly be cleared on payment of the duty. The only requirement is that any job work which is in relation to the goods on which the duty is payable by principal manufacturer is exempted. In the present case the job work activity i.e. electroplating on the cylinder is a vital process by which the principal manufacturer is able to carry out manufacture of goods on which excise duty is payable. Therefore, both the lower authorities have completely misinterpreted the exemption entry of serial No.30. In support of the submission, he placed reliance on the Hon'ble Supreme Court's judgment in the case of Novopan India Ltd. vs. Collector of C.Ex. and Customs, Hyderabad 1994 (73) E.L.T.769 ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e principal manufacturer From the above exemption entry, we find that an intermediate production process as job work in relation to any goods on which appropriate duty is payable by principal manufacturer is exempted. In the present case the appellant's intermediate production process is chrome plating by electroplating process on gravure printing cylinders which directly used in relation to the manufacture of goods on which appropriate duty is payable by the principal manufacturer. Both the lower authorities have interpreted that the very goods on which the job work process is carried out should be cleared on payment of duty. It is their contention that since the cylinder on which the chrome plating was carried out itself is not cleared o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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