Order date – 12 August 2022

Key Pointers - 

• The Appellant, Dow Chemical International Pvt. Ltd, filed an appeal seeking whether the activity of unloading of chemicals of Chapter 29 from the tankers and re-packing and labeled in small drums by the job workers amounts to manufacture and liable to Excise duty. If at all the activities amount to manufacture whether the appellant being a principal supplier is liable to pay duty or the job worker is liable to pay the demand.
• The Tribunal observed that irrespective of the ownership of goods whoever undertakes the manufacturing activity he has to pay the duty. 
• Relying on the matter of M/s. Thermax Babcock and Wilcox Ltd-2018 Tribunal held that since the job worker has carried out all the activities they alone are liable to pay the excise duty, therefore, the duty demand raised against the appellant is not sustainable, hence, the same is liable to be set aside. 
• Since the issue that who is liable to pay the duty has been decided the issue whether the activity per se is amount to manufacture or otherwise were kept open.
• Appeal allowed and order was set aside.