9911796707
TMI Blog1988 (2) TMI 72X X X X Extracts X X X X X X X X Extracts X X X X ..... a, all quantity of excisable goods falling under that item and the competent officer makes assessment. The duty paid chassis are sent to independent body builders for body building and the body builders build bodies on the chassis according to the customers' requirements and specifications. TELCO recovers the price of the bodies so built by independent body builders and the motor vehicles are delivered to the customers directly from the places outside factory premises of the Company. 2. At no stage earlier any objection was raised by the Excise Department alleging short payment of excise duty. However, by demand-cum-notice to show cause, dated 15-1-1985 as contained in Annexure 13, respondent No. 3 called upon TELCO to show cause why it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t body builders for manufacturing body according to the specifications of different customers of the Company. In terms of the agreement between TELCO and the body builder, the latter is required to manufacture body according to the specifications given by TELCO, which in its turn receive it from its customers, and the body builder is required to manufacture the body according to the specifictions. TELCO from time to time inspects the quality of the body built and it has a right to reject it, if not manufactured in accordance with the specifications suggested by the customers of TELCO. The price of the body is recovered by the body builders from TELCO who in its turn recovers it from its customers. TELCO submits two bills to its customers, o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appear that respondent No. 2 recorded the following finding of fact : TELCO get the bodies manufactured on the chassis by independent body builders, the body builders are required to manufacture body according to the specifications given by TELCO, TELCO has full control over the quality of materials and supervise fabrication, it has a right to reject the material at any stage of fabrication if it is not according to the specification of the customer, i.e. the customer of TELCO, such fabrication is done outside TELCO's premises and for such fabrication TELCO neither supply machinery nor manpower. It will thus be noticed that the finding recorded by respondent No. 2 is that the only control TELCO exercises over the body builders is that it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... engaged in production or manufacture through independent contractor is also a manufacturer within the meaning of the Act. There may be cases where "independent contractor" is a cloak, then the person who gets the excisable goods manufactured may be held to be the "manufacturer". But to lay down as a general proposition of law that in all cases where a person gets excisable goods manufactured by an independent contractor, the former shall be the "manufacturer", with respect, cannot be accepted as correct. Other cases of different High Courts including this Court were cited at the Bar in support of the proposition that TELCO cannot be held to be the manufacturer of body on the chassis; but in view of Cibatul's case (supra), I do not think it ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
