TMI Blog2002 (10) TMI 584X X X X Extracts X X X X X X X X Extracts X X X X ..... mitted that the Appellants manufacture electric storage batteries and various parts thereof; that in the manufacture of parts of batteries, one of the inputs is lead alloy; that lead alloy is made by them by melting together 99% pure lead and balance 1% consisting of antimony metal and other additives like master alloy, cadmium, tin, etc.; that in the Central Excise Tariff under Heading 78.01 unwrought lead, there are two sub-headings 7801.01 - Refined Lead and 7808.90 Others ; that lead and lead alloy are both unwrought lead; that since no new commodity commercially known by different name has come into existence, the activity undertaken by them does not amount to manufacture that the issue is squarely covered by the decision in Hindustan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unsel, further, submitted that in the process of making separators PVC/PE sheets emerge at the intermediate stage; that they make P-1 separator, P-2 separator and PE separator; that the ingredients required for each one of them and process of manufacture is different, that in respect of P-2 separators no sheet as such emerges even for a split second; that the product remains on the machine all times; that it is cut to the required size in a continued operation and when cut to sheet emerges in a ready to use condition, for the first time, it is already a separator in a ready to use condition; that separator is undoubtedly exempt as a part of stationary battery. 3.2 He also mentioned that in respect of P-1 and PE separators, no sheet emer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent by them to job worker is the separator which is cut to size sheet. He also contended that they have been regularly reversing Modvat credit taken on inputs used in the separators and if duty is to be confirmed on sheet, the Modvat credit reversed by the Appellants should be deducted from the duty demanded. Finally, the learned Counsel mentioned that since all facts of the process of manufacture is known to the Department, and the fact that Commissioner (Appeals) has held sheet not to be dutiable, imposition of penalty is not justified. 4. Countering the arguments, Shri N.C. Roy Chaudhary, learned Advocate, submitted that the impugned sheets are marketable as any manufacturer of battery can purchase the same from the market and use them ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... intermediate stage of the manufacture of separator for the battery. It has not been denied by the Appellants that in respect of P1-PE separator Plastic sheets do not emerge. They have only contended that no sheet emerge in a marketable form. Merely because the sheets are not wound on drum etc., it cannot be said that sheets are not marketable. The Board s Order dated 5-4-80 was passed on the ground that the sheets are never sold in the market as such. Similarly the Collector (Appeals) in Order dated 20-9-82 had held the sheet not excisable because the Appellants did not market the same. The Adjudicating Authority in the impugned Order has given his specific finding that even after cutting into required sizes, the sheet remains sheet becaus ..... X X X X Extracts X X X X X X X X Extracts X X X X
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