Appellate Collector of Central Excise, Madras vs Bhandary Metals and Alloys

In view of the decision of this Court in Prestige Engineering (India) Ltd. and Others Vs. Collector of Central Excise, Meerut and Others, , we must allow these appeals and remit the matters back to the Commissioner of Central Excise (Appeals), Bangalore, to reconsider the matter in the light of the aforesaid decision keeping in mind the application of the decision in the case of Anup Engineering Ltd Ahmedabad and Others Vs. Union of India and Others, vide paragraph 15 read with paragraph 24 of the judgment. Brass and copper scraps we are told are converted into wires and sections through job work. The goods so produced is stated to be exigible to excise duty under T.I. 68 of the Schedule to the Central Excises and Salt Act, 1944. However, by Notification No. 119/75, dated April 30, 1975, job work was exempted from the levy. The Explanation to the notification defined 'job work' to cover such items of work where the article is supplied to a job worker for manufacture and the job worker returns it to the supplier after manufacture by charging for job work only. Since there is no positive finding on the question whether through job work the character of the goods supplied changes, we are compelled to remit the matters to the authority the Respondent No. 1 so that it may reach a finding of fact and decide the case in accordance with the principles laid down in the case of Prestige Engineering (India) Ltd. and Ors. As considerable time has elapsed, the matter may be expedited.

The appeals will stand disposed of accordingly with no order as to costs.