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2015 (12) TMI 939 - AT - Central ExciseManufacture - manufacture of Steel tubular poles which are manufactured by joining MS pipes of different diameters by welding - Cancellation of excise registeration - Held that:- The appellant have two units in the specified area of Jammu Region of state of Jammu and Kashmire, and both the units were manufacturing same product which is made by joining MS pipes of different diameters by welding and swaging. There is no dispute that unit I had earlier taken Central Excise Registration and was paying duty and availing Notification 56/2002-CE, but in respect of this unit the Jurisdictional Additional Commissioner vide Order in original dated 31.03.2008 had passed an order holding that its activity does not amount to manufacture, in view of Apex Court’s judgment in the case of Hindustan Poles Corporation (2006 (3) TMI 2 - SUPREME COURT ) and on this basis, had ordered cancellation of the central excise registration and had also confirmed the cenvat credit demand alongwith interest. It is also seen that this order dated 31.03.2008 had been passed by the Additional Commissioner after the Apex Court’s judgment dated 28.03.2008 in the case of Prachi Industries (2008 (3) TMI 25 - Supreme court) wherein the Apex Court after distinguishing its earlier judgement in the case of Hindustan Poles Corporation, had taken a contrary view holding that joining of duty paid MS pipes of different diameters by welding and swaging would amount to manufacture. Commissioner while confirming the duty demand in the impugned order has also allowed the cenvat credit which according to the appellant is ₹ 23,59,833/- and thus, only the differential amount of ₹ 11.00 Lakhs may be payable by the appellant through PLA which would be exempt only if the benefit of Notification No.56/2002-CE is applicable. The question as to whether in the circumstances of the case the benefit of Notification No.56/2002/CE can be extended to them requires serious consideration which cannot be done at this stage. In view of this, we are of the view that this is not the case for total waiver. - Partial stay granted.
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