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2014 (10) TMI 161 - AT - Central ExciseManufacture - activity of dilution of sulphuric acid and finished product is supplied to the battery companies for use in the batteries - revenue is of the view that the said activity amounts to manufacture - Held that:- The activity undertaken by the applicant is that they are purchasing 98% concentrated sulphuric acid, and as per the requirement of the customers they diluted it with demineralised water, to attain desired concentration. The product that emerged was diluted sulphuric acid (28-50%), which was marketable and it is specifically used in the manufacture of battery manufacturing units. Therefore, in terms of definition under Section 2(f) of the Central Excise Act, 1944, we hold that the appellant are engaged in the activity of manufacture. - Demand of duty and interest confirmed - penalty set aside - appellant allowed to use cenvat credit - Decided partly in favor of assessee.
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