2026-VIL-595-CESTAT-DEL-CE
  1. Home
  2. 2026-VIL-595-CESTAT-DEL-CE

CENTRAL EXCISE CESTAT Cases

Central Excise - Duty liability on goods manufactured by contract manufacturer on job work basis, finished goods cleared without undertaking any manufacturing activity - Appellant entered into an agreement with job-worker for manufacture of car seat sets on contract manufacturing/job-work basis. The raw materials were provided by the appellant to the contract manufacturer, who was availing the area-based exemption. The finished goods were cleared to the appellant, who sold the same to automobile manufacturer without undertaking any manufacturing activity - SCN proposing to recover excise duty from the appellant on the ground that as the principal manufacturer, it was liable to pay the excise duty on the goods manufactured by the contract manufacturer - Whether the appellant is liable to pay excise duty on the goods manufactured by the contract manufacturer on job work basis - HELD - Various decisions of the Supreme Court and the Tribunal have laid down the principle that the job worker who has undertaken the manufacturing activity is the "manufacturer" and is liable to pay the excise duty. As per the agreement between the parties, the relationship was that of independent contractors and the manufacturing activity took place at the premises of the contract manufacturer by employing its own resources, labour and machinery, without any control and supervision of the appellant. Applying the ratio of the law laid down by the Apex Court, the contract manufacturer is the "manufacturer" of the goods and is liable to pay the excise duty - The appellant cannot be said to be the manufacturer of the goods and it is the contract manufacturer, who is the manufacturer of the goods and, therefore, liable to pay the excise duty - The impugned order is set aside and the appeal is allowed
Download File
show more Judgements  

Quick Search

/

Advance Search

GST Resources

/

Gst Rate Finder

Tax Vista

Your Weekly Tax Recap

By Kasi Viswanathan V

Weekly Summary

VIL Video

Changes in GST, IT & Cuss w.e.f. 1 Apr
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?