Case Law Details
Comet Technocom Pvt. Ltd. Vs Commissioner of Central Excise & S. Tax (CESTAT Kolkata)
The issue here is very short. The assessee sent materials to diverse job workers for manufacture of the final product. Only inspection of the finished goods was carried out at the premises of the assessee. If the job workers are proved to be the agents of the assessee who work under their supervision and control, then the assessee is the real manufacturer and not the job workers. Excise duty is payable by the assessee. On the other hand, if the job workers are proved to be independent contractors with little or no supervision by the assessee then they are the manufacturers and the liability of paying excise duty is with them.
CESTAT held that if the job workers are proved to be independent contractors with little or no supervision by the assessee then they are the manufacturers and the liability of paying excise duty is with them. From the above it would be evident that in the present case, the job workers of the assessee company were independent contractors/manufacturers and hence, the assessee company and/or its directors cannot be saddled with any liability of payment of excise duty and/or consequential penalty with respect to the goods so manufactured by the said job workers.
FULL TEXT OF THE CESTAT KOLKATA ORDER
That this Tribunal vide Final order No. F/77097-77102/2018 dated 14.12.2018 allowed the Assesee’ s Appeal Nos. E/199-201/2009 by setting aside Order-in-Original No. 77/Commr./CE/Kol-II/Adjn. 2008-2009 dated 23.01.2009 and rejected the Revenue appeals being nos. E/70151, 70165- 70166/2013 arising out of O-I-O No. 01/Denovo/Commr./CE/KolII/Adjn/2012-13 dated 30.11.2012 upon the findings recorded at Para 16 to 21 thereof. In the “Order Forwarding Letter” the date of Order was mentioned as “05/12/2018” however.
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