9911796707
TMI Blog2005 (6) TMI 107X X X X Extracts X X X X X X X X Extracts X X X X ..... inter alia, alleged that the job workers were only hired labour and the appellants were the real manufacturers of the lead anodes. The demand of duty was contested by the party on numerous grounds. The adjudicating authority passed Order-in-Original dated 31-3-1997 confirming the demand against the assessee and imposing a penalty on them. Against this order of the Commissioner, the appellants filed the captioned appeal and this Tribunal allowed it as per Final Order dated 10-5-99 holding that no manufacture was involved in the process of conversion of lead ingots into anodes. The department took the Tribunal's order in appeal to the Hon'ble Supreme Court [2004 (166) E.L.T. 145 (S.C.)]. Three issues arose before the Court, (a) whether the ab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... further submitted that the appellants could not be said to have manufactured the product by mere reason of the fact that the manufacture took place in their premises and it was out of the raw materials supplied by them. In this connection, reliance was placed on the following decisions of the Tribunal :- (i) Tata Iron Steel Company Ltd. v. CCE, 2003 (156) E.L.T. 681 (Tri. - Kol.) (ii) CCE, Indore v. Gwalior Chemicals Ind. Ltd., 2004 (172) E.L.T. 186 (T) = 2004 (93) ECC 75 (Tri.) (iii) SRF Ltd. v. CCE, Madras, 2001 (136) E.L.T. 210 (Tri. - Del.) 3. Ld. SDR pointed out that the appellants had admittedly paid duty on the same item manufactured in the same manner in their sister unit at Debari. It was further submitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cost by the appellants. The Contractor was required to follow of the Rules and Regulations under the Factories Act and other Labour Laws in force, in engaging labour inside the appellants' factory. It was the Contractor's liability to get his labourers insured against injury, disability etc. which might be caused due to accident in the course of job work. Again, it was the responsibility of the Contractor to get registered for sale tax purposes under the A.P. Government Sale Tax Act. The work order also laid down a 'delivery schedule', which required that the Contractor should have the capacity of delivering a minimum of 835 lead anodes in a month. It enabled the appellants to inspect the material/process at any stage of execution of the w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee. On these facts, it was held by the Apex Court that the house-hold ladies were the real manufacturers of agarbatti etc. Accordingly the value of goods manufactured by these ladies was held not includible in the aggregate value of clearances of the assessee. The ratio of this judgment of the Apex Court was followed by this Bench in the case of Motor Industries Company Ltd. (supra) wherein it was held that a hired labourer had no role to play except to receive his wages and that the inter-relationship of the parties to such a contract was that of employer and employee. The Tribunal's decision in the case of Motor Industries Company Ltd. (supra) was affirmed by the Apex Court vide 1999 (111) E.L.T. A195. It is obvious from the facts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s nor the fact that the product was manufactured out of raw materials supplied by the appellants would detract from the fact that they (job workers) manufactured the goods. They can hardly be considered as hired labour inasmuch as their aforesaid role was not merely one of providing labour and collecting wages. According to the concept of 'hired labour' brought out in the Tribunal's judgment in Motor Industries Company Ltd. (supra) by relying on the Apex Court's judgment in the case of M.M. Khambhatwala (supra), only one who merely provides labour and collects wages for the same could be treated as hired labour. The job workers in the instant case would not fit into this concept. 6. For the reasons noted above, we hold that the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X
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