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TMI Blog1991 (11) TMI 56X X X X Extracts X X X X X X X X Extracts X X X X ..... rap, brass scrap, zinc tin, etc. and the said material is melted in suitable compositions to make specific alloys. After casting of the said alloys, the petitioners carry out a number of other processes and finally draws the wires for delivery to the customers. Initially, the processes undertaken by the petitioners were not liable to payment of excise duty but after the introduction of Tariff Item No. 68 with effect from March 1, 1975, the processes undertaken by the petitioners attract payment of excise duty under residuary Item No. 68. 3. On April 30, 1975, the Central Government in exercise of powers conferred by sub-rule (1) of Rule 8 of Central Excise Rules exempted the goods falling under Tariff Item No. 68 of the First Schedule pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods, i.e. the wires and the material supplied by the customers do not remain the same product. The Assistant Collector felt that as the finished product is definitely a new and different product having different name and character, the petitioners are not entitled to benefit of exemption notification. The order passed by the Assistant Collector was confirmed in appeal by the Appellate Collector of Customs and Central Excise by order dated October 21, 1978. The petitioners carried revision before the Central Government but the revision ended in dismissal by order dated October 30, 1978. The Central Government accepted the claim of the petitioners that mere fact that article after undergoing the requisite process changes shape does not nece ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y mixture of suitable compositions. At this juncture, the raw material comes into existence and from this raw material by the process of moulding, rolling and cutting, the wires are drawn by the petitioners. It is impossible to accede to the submission of Shri Cama that the process of manufacture undertaken by the petitioners is merely a job work. The concept of job work as set out in explanation to the exemption notification means that the article is supplied to the job worker and the article is returned by the job worker after undertaking manufacturing process. In the present case, what is supplied is only the scrap material and the petitioners do not undertake manufacturing process on such scrap material but converts the scrap material a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oth is supplied to the job worker for printing or dyeing to convert the cloth into a saree, the mere fact that the cloth originally supplied is known by different names in the market cannot deprive the job worker of the benefit of the exemption notification. A person can claim to undertake process of job worker when the work done is such which does not totally alter the character of the original material supplied. In the present case, the material supplied was a scrap material and was moulded and specific alloys were manufactured. It is impossible to accept the submission that the process undertaken by melting and thereafter moulding, rolling, and cutting is that of merely job worker. Once, the conclusion is reached that the process underta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e purpose of manufacture of wires. The decision of the Division Bench, therefore, has no application to the facts of the present case because what is supplied by the customers to the petitioners is not raw material and the raw material comes into existence only because of process undertaken by the petitioners. Once, it is found that what is received by the petitioners is not raw material, then it is futile to suggest that the value of the materials manufactured by the petitioners should be determined only with reference to the value of the work undertaken by the petitioners. The three authorities below were perfectly justified in determining the value of the wires by taking into consideration the value of the raw materials. It is also requi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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