TMI Blog2000 (3) TMI 1030X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to enforce the Bond for Rs. 9 lakhs and imposed a penalty of Rs. 5 lakhs. 2. Shri C.S. Lodha, learned Advocate submitted that the Appellants carry out the activity of cold rolling on hot rolled coils; that the mere activity of reducing the thickness of a coil by the process of cold rolling does not amount to an activity of manufacture, as there is no emergence of a new product having a different name, character or use; that as per Supreme Court s decision in C.C.E., Chandigarh v. Steel Strips Ltd. - 1995 (77) E.L.T. 248 (S.C.), the activity undertaken by them does not amount to an activity of manufacture within the meaning of Section 2(f) of the Central Excise Act; that in Jyoti Engg. Corpn. v. C.C.E. - 1989 (42) E.L.T. 100, Tribunal h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the Appellants, besides using their own H.R. Coils, were also receiving H.R. Coils under Rule 57F(2) of the Central Excise Rules for job work and there was no requirement to mention RG-I register in respect of goods processed on job work basis; that the Coils, seized by the officers on the day of visit, were not in complete condition as the final quality controls checks were about to be done; that they had submitted a Chartered Accountant s Certificate that right from inception i.e. from 30-3-1994 up to 24-2-1996 every single gram of raw material received, produced and cleared was accounted for and as such there was no question of any unrecorded material lying in their factory. He finally submitted that as per impugned Order, the C.R. Coi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Cold Rolled is regarded as not amounting to manufacture, Heading 72.09 of the Tariff will become redundant; that as such manufacture is implied in the Tariff as two different Headings have been provided for hot rolled products and cold-rolled products. He also relied upon the decision in the case of Gramophone Co. of India Ltd. v. C.C., Calcutta - 1999 (114) E.L.T. 770 (S.C.) wherein process of recording audio cassettes was held to be amounting to manufacture as blank audio cassette is distinct and different from pre-recorded audio cassette and two have different use and name. He contended that the cold rolled products are distinctly known in the market. Regarding liability of seized goods for confiscation, the learned D.R. submitted that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e applicable to the instant case in view of the fact that noticee himself treated the process of conversion of H.R. Coils into C.R. Coils as manufacture and accordingly took Modvat credit on inputs namely H.R. Coils . In absence of any findings given on merit by the Commissioner on the aspect of manufacture in the impugned Order, we are of the view that in the interest of justice, this issue be left open for both Revenue and Appellants. The Commissioner has considered the seized goods as fully manufactured as these are known in the market and stickers showing weight, width and size were pasted on each coil. The Appellants have contended that the goods became fully manufactured only after the quality control inspection and only then the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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