2025-VIL-1966-CESTAT-HYD-CE
  1. Home
  2. 2025-VIL-1966-CESTAT-HYD-CE

CENTRAL EXCISE CESTAT Cases

Central Excise - Job Work, Marketability, Notification No. 214/86-CE – Appellant manufactured side pillars and door pillars under job work and cleared the same to M/s Bombardier (raw material supplier) without payment of Central Excise duty. M/s Bombardier had filed a declaration under Notification No. 214/86-CE, stating that the goods received from the appellant were used in their factory for the manufacture of final products - Dept held that M/s Bombardier had not disclosed the process involved in the job work to the Central Excise Department, with a view to evading duty of excise, as they were aware that the process carried out in job work amounted to manufacture and duty was payable on the goods - Whether the door pillars/side pillars manufactured by the appellant were excisable goods and the appellant was liable to pay the Central Excise duty – HELD - The door pillars/side pillars manufactured by the appellant were not finished goods capable of being marketed, as they were subjected to further manufacturing process by Bombardier for supply to the Delhi Metro. The raw material supplied by Bombardier on the job work challan did not belong to the appellant, and the processed material/goods also did not belong to the appellant. The appellant had received only job work charges from Bombardier - The job worker is not liable to pay the duty and the duty liability is of the raw material supplier who had furnished the undertaking under Notification No. 214/86-CE – Further, the "excisable goods" definition under Section 2(d) of the Central Excise Act, 1944 requires the goods to be "capable of being bought and sold for a consideration and such goods shall be deemed to be marketable." In the present case, the door pillars/side pillars manufactured by the appellant were not capable of being bought and sold and had no independent marketability - the demand of duty is not sustainable and the imposition of penalty would also not sustain – The impugned order is set aside and the appeal is allowed
Download File

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Weekly Tax Recap

By Kasi Viswanathan V

Weekly Summary

VIL Video

GSTR-9 & GSTR-9C of FY24-25
By CA Vivek Jalan

Create Account

Security-Code
New Code?

Log In

New User ? Forgot Password ?

Forgot Password

Security-Code
New Code?
Please Note: This facility is only for Subscribing Members.

Email this page

Feedback this page

Schedule a Demo

Schedule a demo to know the features and advantages of VILGST portal. Get to know the tips to find the desired results in faster way.

Caselaw Request Form (CRF)

Didn’t find what you are searching for? No worries, please give us the following details and VIL will email you the desired Caselaws at the earliest:

Security-Code
New Code?