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2023 (5) TMI 597 - AT - Central ExciseRecovery of CENVAT Credit alongwith interest and penalty - Process amounting to manufacture or not - processing of steel Tubular Pole - Section 2(f) of the Central Excise Act, 1944 - HELD THAT:- The Appellant purchased and also manufactured in their factory, pipes and tubes of various sizes and lengths and those were converted into Steel Tubular Poles by cutting into required sizes and required lengths. Then they are swaged to feed into their next lower sized pipe. After swaging, welding is done and then a plate is fixed at the time of welding process. The swaged pipes are holed at required places and after that painting etc. are done to make the pole marketable. It is the contention of the Appellants that they used mild steel Black Pipes and MS plates, which are major raw materials. The Ld.Commissioner has wrongly distinguished the judgement of the Hon’ble Supreme Court in the case of M/S. PRACHI INDUSTRIES VERSUS COMMISSIONER OF CENTRAL EXCISE, CHANDIGARH [2008 (3) TMI 25 - SUPREME COURT] relied upon by the Appellant. The facts of the present case are squarely covered by the above-mentioned decision of the Hon’ble Supreme Court - the Ld.Commissioner has not only misunderstood the judgement of the Hon’ble Supreme Court, but has also wrongly interpreted the ratio laid down by the Hon’ble Supreme Court in the impugned order. There is no dispute that MS Black Pipes manufactured by the Appellant in their own factory are first subjected to the process of swaging and later welded to make the desired length of pipes. Their Lordships in the judgement of Prachi Industries have distinguished the ratio of HINDUSTAN POLES CORPORATION VERSUS CCE, CALCUTTA [2006 (3) TMI 2 - SUPREME COURT]. The facts in Hindustan Poles case related to mere joining of pipes by the process of welding only and no swaging of pipes was involved. By applying the ratio of the Hon’ble Supreme Court in Prachi Industries, the processes of swaging and welding carried out by the Appellant results into manufacture of Tubular Poles and pipes of different lengths within the meaning of Section 2 (f) of Central Excise Act, 1944. The impugned order cannot be sustained and is therefore set aside - Appeal allowed.
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