Case Law Details
3M India Ltd Vs Commissioner of Central Excise (CESTAT Bangalore)
CESTAT Bangalore held that process undertaken by job worker of injecting the raw materials into aerosol cans doesn’t amount to manufacture and hence excise duty demand thereon not sustainable.
Facts-
The present appeal is filed by M/s. 3M India Limited to assail the order passed by the Commissioner of Central Excise, Bangalore III, Commissionerate Bengaluru, to the extent it has imposed a penalty of Rs. 1,51,00,000/- upon the appellant under rule 26 of Central Excise Rules, 2002.
The appellant is engaged in the manufacture and trading of various products in diverse sectors, such as transportation, health care, electrical and communications. The appellant inter alia engages various job workers for performing product services by supplying raw materials and packing materials. The appellant contends that where the activity undertaken by the job worker amounts to manufacture, it discharges the applicable excise duty on the said goods in the capacity of the principal manufacturer, but in cases where the process undertaken by the job worker does not amount to manufacture, excise duty is not paid and in such cases, the appellant instructs the job worker to discharge service tax. The goods so received by the appellant from the job worker without payment of excise duty are traded by the appellant.
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