TMI Blog2011 (1) TMI 12X X X X Extracts X X X X X X X X Extracts X X X X ..... aggrieved by the judgments and orders passed by the authorities including the Customs, Excise Gold [Control] Appellate Tribunal [for short `CEGAT'] demanding duty of Rs. 4,92,566.28 from the appellant on the plant and machinery including testing equipments manufactured by them. 2. The appellant herein is a manufacturer of electronic transformers, semi-conductor devices and other electrical and electronics equipments. During the course of such manufacture the appellant also manufactured machinery in the nature of testing equipments to test the final products of the assessee company costing Rs. 31,27,405/- as per Note 6 of the Schedule `Q' page 15 of the balance sheet for the year ending December, 1987. The aforesaid position was furth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ipments. It was further contended that under Section 3 of the Central Excises and Salt Act, 1944 the imposition of excise duty is on the act of manufacture or production and when there is no manufacture or production, there cannot be any duty so leviable, particularly, when the aforesaid processed material was not marketable. 4. The Additional Collector, Central Excise under order-in-original No. 6/92-93 dated 27.5.1992 after consideration of the contentions confirmed the demand of duty amounting to Rs. 4,92,566.28 and imposed a penalty of Rs. 50,000/- holding that in view of the documentary evidence and the balance sheet it had been proved beyond doubt that they had manufactured plant and machinery/testing equipments worth Rs. 31.26 la ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aid submissions of the counsel appearing for the appellant were however refuted by the counsel appearing for the respondent. We have very carefully scrutinized the records and examined the submissions of the counsel appearing for the parties in the light of the said records. 7. The demand for payment of central excise duty in the present case appears to have been made on the basis of statement made by the appellants in their balance sheet to the effect that there is an addition to plant and machinery including testing equipments worth Rs. 31.26 lacs which have been made in the company by capitalisation of the expenditure on (i) raw material, (ii) stores and spares and (iii) salary/wages and other benefits. The aforesaid statement an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d countries with a view to save foreign exchange. 9. From the aforesaid own admission of the appellant and from the facts brought out from the records it is clearly proved and established that the appellant had manufactured machines in the nature of testing equipments worth Rs. 31.26 lacs to test the final products manufactured by them. 10. Even if such equipments were used for captive consumption and within the factory premises, considering the fact that they are saleable and marketable, we are of the view that duty was payable on the said goods. The fact that the equipments were marketable and saleable is also an admitted position as the appellant has admitted it in their reply to the show cause notice that they had undertaken suc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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