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2017 (9) TMI 13 - AT - Central ExciseSub-contract - the main appellant paid service tax on the work executed by them as a sub-contractor to the second appellant - fabrication of CW liners, pipes and bends, in terms of work order dated 15.07.2009 - whether the main appellant is required to pay Central Excise Duty on manufacture of pipes? - Held that: - On careful consideration of various provisions of the said work order, we find that the main appellant cannot be considered as a labour contractor, simply providing labourers for certain work. It is clear that they have undertaken various fabrication work in terms of work order in their own account using the material supplied by the main contractor - we uphold the findings of the original authority regarding the duty liability of the main appellant with reference to manufacture of pipes and bends. Time limitation - Held that: - the main appellant has undertaken manufacture of excisable goods and are liable to pay duty. The demand for an extended period is sustainable. However, the quantification of duty demand as well as the correctness of finding regarding confiscation and consequent redemption fine has to be re-examined by the original authority. Penalty u/r 26 of CE Rules, 2002 - Held that: - we note that the second appellant is a limited company. In various decisions, the tribunal has held that penalty under Rule 26 can be imposed only on individuals and not on companies - the order has been passed exparte and the appellant had claimed that due opportunity has not been provided to them to defend their case. In fact they claimed that they have filed reply to the SCN 24.12.2011 which was not considered. The original authority is required to decide the case of penalty, afresh. Appeal decided against appellant in part and part matter on remand - Appeal allowed by way of remand.
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