TMI Blog2012 (12) TMI 583X X X X Extracts X X X X X X X X Extracts X X X X ..... iven a site wherein appellant procured duty paid pipes and used the same for execution of pipe line project and the said miter bends, reducers of iron & steel were fabricated from duty paid pipes at their work shop situated at the site at Botad. Demand on the appellant on these miter bends and reducers confirmed only on the ground that it was done so at their work shop and removed from work shop to the site for further use in the laying of pipe line for water project but this stand of the lower authorities seems to be incorrect, as the address as well as the show cause notice specifically talks about the reducers and the bends being fabricated at their site at Botad. Thus the fabrication of these items at site for the use at site is not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... undred and fifteen per cent of the total cost of production of such goods as provided under Rule 8 of the Central Excise Valuation (Determination of Price of Excisable goods) Rules, 2000. Accordingly, the value of the said goods was worked out to Rs.21,85,781/- and Central Excise duty payable @ 16% was worked out to Rs.3,49,725/-. The appellants had obtained Central Excise registration on 15.03.2001 and filed ER-1 return for the month of March-01 on 09-04-2001 along with copy of challan dated 22-03-2001 for Rs. 1,00,000/-. In the ER-1 return they showed assessable value Rs.5,97,479/- i.e. only fabrication cost. Show cause notice dated 06.07.2005 was issued to the appellants proposing recovery of Central Excise duty amounting to Rs. 3,49,725 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e at work shop, but manufactured at work shop. In order to support his claim, he takes us through the show cause notice wherein it is specifically mentioned as to the address of the work shop of the appellant being at site. He would submit that the issue of whether the miter bends and conversion of pipes into fittings would amount to manufacture or not was considered by the Tribunal in the case of Dodsal Pvt. Ltd. Vs. CCE Bangalore reported at 2006 (193) ELT 518 and held that Miter Bends, Ring Girders, Cones/Reducers, Elbows joints etc. if made out of duty paid goods at site cannot be considered as a manufactured item and not liable to duty. He would also submit that such judgment of the Tribunal was followed in the case of PSL Ltd. - 2008 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellant procured duty paid pipes and used the same for execution of pipe line project and the said miter bends, reducers of iron steel were fabricated from duty paid pipes at their work shop situated at the site at Botad. 9. On the perusal of the show cause notice, we find that the show cause notice specifically talks about work shop near Shri Khodiyar Temple, Botad-Gadhada Road, Botad (District- Bhavnagar) and the same is addressed at the above address as well as to their head office at Bombay. At paragraph 5 in the show cause notice, the said show cause notice specifically states "it reveals that the noticee had manufactured and cleared total 67 miter bends, reducers of iron steel at their Botad site, which includes 19 miter bends r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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