Job work of textile goods – Liability under Excise Rule 12B- SC Explains

Dinesh Textiles Vs Commissioner of Central Excise, Customs and Service Tax (Supreme Court)

Noting that Central Excise Rule 12B and the notification talked about ‘aggregate value’ of clearances of job worker, the Supreme Court has held that assessee manufacturing textiles through job workers would be liable once aggregate value crossed the threshold. The Apex Court rejected assessee’s reliance on third illustration in CBEC Circular dated 30-10-2003. It held that third illustration did not fit in the scheme of Rule 12B. The assessee had pleaded that

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