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TMI Blog1986 (2) TMI 60X X X X Extracts X X X X X X X X Extracts X X X X ..... omponents to the petitioner on 'job work' basis. The raw materials supplied by the ITI are used in the manufacture of transmitters and components and they are then returned to the ITI, collecting the job charges from the latter. In the payment of excise duty dutiable under the Central Excises and Salt Act, 1944 ('the Act') the petitioner had excluded the raw materials supplied by the ITI and returned to it on job work basis. 3. But in the show cause notices dated 27-11-1980/1-12-1980 and 24-4-1981, issued to the petitioner under the Act (Annexures B and C), the Superintendent of Central Excise, Mahadevapura Range, Bangalore-4 (Superintendent) proposed to levy excise duty against it on the raw materials also supplied by the ITI which was n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 15th January 1986 and the rulings of the High Courts of Bombay and Calcutta in Noble Paints Varnishing Co. Pvt. Ltd. v. Union of India and Others [1985 (19) E.L.T. 80 (Bom.)] and Associated Pitments Limited v. Collector of Central Excises, Calcutta [1983 E.L.T. 876 (Calcutta)] relied on and followed in W.P. No. 17857 of 1983. 7. Sri K. Shivashankar Bhat, learned Senior Standing Counsel for the Central Government appearing for the respondents sought to justify the order made by the Assistant Collector. 8. The duty on the goods in issue is chargeable to excise duty under Residuary Tariff Item 68 of the First Schedule to the Act is not in dispute. 9. In exercise of the powers conferred on it by Rule 8 of the Central Excise Rules of 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of work where an article intended to undergo manufacturing processes is supplied to the job worker and that article is returned by the job worker to the supplier, after the article has undergone the intended manufacturing process on charging only for the job work done by him. When expressed in simple language, the notification exempts the raw material supplied by another as the ITI to the manufacturer on job work basis which is used by him in the intended manufacturing process but is ultimately returned to its owner on executing that job work from payment of excise duty thereon from Tariff Item 68 of the First Schedule to the Act. The object of allowing such exemption is not far to seek. The object of allowing such exemption appears to be o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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