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2016 (8) TMI 891 - CESTAT NEW DELHIWhether the duty paid copper tubes purchased from outside and subjected to various processes by the appellant would continue to be classified under 74.11 as copper tubes or pipes or whether it has undergone manufacture and would be classifiable under 8414.91 as parts of gas compressor - Held that:- Copper tubes and pipes covered under 74.11, as commonly understood in trade parlance, would include tubes and pipes of various diameters which satisfy the note 1(h) to Chapter 74 which are generally sold in running length. Whereas in the case of appellant the pipes are cut to different dimension, subject to process of bending and also process such as grinding and smoothening would no longer be understood in trade parlance as simple tubes and pipes. These goods can only be used as parts of the equipment for which they were made. The above processes have transformed, the copper tubes into new products described as charging tubes, discharge tubes, second tubes etc. which are nothing but parts of gas compressors. These products have character, use and name which are distinctly different from the generic term of copper tubes. Therefore, the process amounts to manufacture as defined in Section 2(f) of the Central Excise Act, 1944. The assessee having declared fairly their view in the classification list filed before the proper officer, it was open to the Revenue to carry out verification and initiate proceedings for demand if necessary within the normal period of six months under Section 11A of the Central Excise Act. Keeping this in view, we find that the first show cause notice covering the period 27.02.1989 to 31.03.1993 involving demand of about ₹ 10.84 lakhs, issued on 16.02.1994 would be hit by limitation under Section 11A. However, the subsequent three notices would fall within the normal period of limitation and accordingly the demands of duty raised in these three notices are upheld. However, there is no justification to impose any penalty on the assessee and hence penalty imposed in the impugned order is set-aside. - Decided partly in favour of assessee
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