Customs, Excise and Gold Tribunal - Delhi
Fykas Engg. (P) Ltd. vs Commissioner Of Central Excise on 29 August, 2000
Equivalent citations: 2000(122)ELT168(TRI-DEL)
ORDER Jyoti Balasundaram, Member (J)
1. In this case, the admitted position is that job-workers carried out job-work of manufacturing items such as Permanent Thermocouple, connectors, carbo tips used for collecting samples of molten material in iron and steel factory and the appellants herein only carried out the process of testing, inspection and packing of the same. In these circumstances, the first question that arises is whether the activities carried out by the appellants amounts to manufacture. It has been held by the Tribunal in the case of Fenner India [1999 (35) RLT 861] that the process of testing, inspection and packing does not amount to manufacture. Following the ratio thereof, we hold that the appellants do not carry out any manufacturing activity and hence duty demand confirmed upon them is not sustainable and we set aside the same.
2. Job workers who carried out the actual manufacture of the items in dispute is the manufacturer of the goods in the eye of law, in the light of the decisions of the Apex Court in the case of CCE, Baroda v. M.M. Khambhatwala reported in [1996 (84) E.L.T. 161 (S.C.)].
3. In view of the above, we set aside the duty demand of Rs. 4,31,118.80 P for the period 01.03.86 to 31.01.88 along with penalty of Rs. 40,000 (amount involved in Appeal No. E/3592/92-B) and Rs. 2,00,517.33 P for the period 01.07.92 to 31-12-92 and penalty of Rs. 5,000/- (amount involved in Appeal No. 4552/94-B) and allow the appeals.