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2011 (8) TMI 951 - AT - Central ExciseDemand of duty, interest and penalty - whether activity of pickling, cutting, drawing and polishing have emerged a new distinct commodity except the conversion of M.S. round into bright bars – Held that:- in the case of Vee Kayan Industries (1994 - TMI - 44247 - SUPREME COURT OF INDIA - Central Excise) M.S. round into bright bars does not amount to manufacture, the same has been clarified by the Board Trade Notice No. 15/2004, dated 16-6-2004. The activity of drawing of M.S. round bars into bright bars is an activity of manufacture has specifically brought into statute book w.e.f. 18-4-2006. Therefore we are concluding that during the impugned period i.e. from 1-4-1994 to 30-9-1995, the activity undertaken by the appellants i.e. conversion of M.S. round bars into bright bars through an activity of pickling, cutting, drawing and polishing does not amount to manufacture. When there is no manufacturing activity, no excise duty is payable. Therefore, the demands are not sustainable, when demand are not sustainable, the question of demanding interest and imposition of penalty also does not arise. Therefore the impugned order is set aside. The appeals are allowed
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