The case pertains to the determination of whether the process ...

Job worker's PCB population process constitutes manufacturing - attracts duty liability as principal-principal clearance conditions not met.

Case Laws     Central Excise

September 7, 2024

The case pertains to the determination of whether the process undertaken by the appellant, a job worker, amounts to manufacture and the consequent duty liability. It was held that the process of populating PCBs by the appellant constituted manufacture as it transformed the raw materials into a new and distinct product. Regarding duty liability, it was ruled that the appellant, being the job worker, was rightly demanded duty since the conditions for clearance on a principal-to-principal basis were not satisfied. However, the demand was limited to the normal period due to the delay in issuing the show cause notice. The appellant's claim of exemption or duty payment by the raw material suppliers was remanded for verification of supporting documents. Penalties were set aside, and the matter was remanded for re-quantification of demand based on the observations made.

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