JAYANT JUNEJA Vs. COMMISSIONER OF CENTRAL EXCISE, JAIPUR

JUDGEMENT

(1.) The facts in brief are that on 13 -1 -1992, M/s. Sita Juneja & Associates (hereinafter referred as M/s. SJA), was awarded a contract by M/s. ITC Ltd. to make different items of furniture for a Five Star Hotel at Jaipur, known as Hotel Rajputana Palace Sheraton. The work was to be done on labour contract basis and as per the drawings and specifications supplied by M/s. ITC Ltd. all the materials for the work were supplied by M/s. ITC Ltd. and any wastage thereof was to the contractor's accounts. The work was executed by M/s. SJA through sub -contractors in 1992 -93, with the raw material supplied by ITC Ltd. and as per the specifications, drawings and designs supplied by ITC Ltd.

(2.) On the basis of an information that M/s. Hotel Rajputana Palace Sheraton, a Five Star Deluxe Hotel owned by M/s. ITC Ltd., had entered into agreements with different manufactures of furniture for the manufacture of different items of furniture 'at site' on labour contract basis as per the terms, conditions and rates set out in the respective agreements, the Officers of the Central Excise visited Hotel Rajputana on 12 -12 -1995 and directed the representatives of M/s. ITC Ltd. to furnish complete information relating to the manufacture of different items of furniture for use in their premises. M/s. ITC Ltd., in response, furnished inter alia the copies of the agreements entered into by them with M/s. SJA, represented by the Appellant herein for the manufacture of furniture 'at site' on labour contract basis under their letter dated 11 -1 -1996.

(3.) Statements of one of the partners of M/s. SJA and one Shri Abhijit Chakrawarthy of M/s. ITC were recorded Under Sec. 14 of the Central Excise Act, 1944 (for short 'the Act'). On the basis of scrutiny of the agreement, details furnished, and statements recorded, it appeared that M/s. SJA had engaged itself in the manufacture of items of furniture on job work basis for M/s. ITC Ltd. and, accordingly, they are the 'Manufacturer' of the said excisable goods within the meaning of Sec. 2(f) of the Act.