TMI Blog2000 (6) TMI 289X X X X Extracts X X X X X X X X Extracts X X X X ..... vocate, submitted that the appellants manufacture metal containers and as they did not use power in any process of manufacture, they claimed exemption from duty under the above mentioned Notifications during the period from 1983-84 to 1988-89; that Collector Central Excise, under the impugned Order No. 2/MP/90 dated 23-1-1990, confirmed the demand of central excise duty amounting to Rs. 37,42,882.26p in respect of metal containers and imposed a penalty of Rs. 10,00,000/- holding that the tops and bottoms of the metal containers purchased from M/s. Abrama Metal Components and M/s. Sterling Components were manufactured with the aid of power; that the appellants used to supply sheets for manufacture of tops and bottoms to M/s. Sterling Compone ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rrangement was purely of commercial nature as is normally done in business; that the ratio of the Supreme Court in the case of McDowell Company s case cannot be applied in view of Collector s findings that both Abrama Components and Sterling Components were totally seperate entities. 3. The learned Advocate also mentioned that the decision in the case of Standard Fire Works v. CCE, Madurai, 1987 (28) E.L.T. 56 (S.C.), relied upon by the Collector, is not applicable as the facts are entirely different; that in the Standard Fire Works case the components were got manufactured on job work basis whereas in the present matter components were manufactured by out- side parties which were puchased on principal to principal basis. He further, ment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and consequently the exemption from payment of duty is not available to the metal container manufactured by them. The ld. SDR relied upon the decision in the case of Merchant Steel Industries Pvt. Ltd. v. CCE - 1992 (57) E.L.T. 540 (Guj.), wherein it was held that as the outside unit used power in the process of printing and lacquiring of tin sheets the benefits of notification 94/70 was not available to the petitioner. 5. We have considered the submission of both the sides. Notification 71/83-CE dated 1-3-1983 provides Nil rate of duty in respect of metal containers if such containers are produced without aid of power from sheets which had been tinned, printed, coated as lacqured by others with the aid of power. Similar exemption was pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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