TMI Blog2011 (5) TMI 59X X X X Extracts X X X X X X X X Extracts X X X X ..... items supplied free of cost by the TNEB to the appellants - since the appellants are held liable to pay duty on the PSC poles manufactured using such cement and steel, they are in principle eligible for credit of central excise duty paid on the inputs - The appellants undertakes to get the invoice endorsed and satisfy other requirements under the CENVAT Credit Rules so as to enable the original authority to allow credit, subject to verification - Hence, remanding the matter to the original authority in regard to grant of CENVAT credit on inputs used in the manufacture of PSC poles. Penalty - It was in dispute as to whether the appellants should pay the duty or the Electricity Board will pay the duty - Hence, waive the penalty imposed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urers. In the case of Kerala State Electricity Boar Vs. CCE 1990 (47) ELT 62 (T), it was held by the Tribunal that the Electricity Board is the customer and the contractor is the actual manufacturer. This decision of the Tribunal has been upheld by the Hon ble Supreme Court vide Collector of Central Excise Vs. Kerala State Electricity Board 1992 (62) ELT A52 (SC). As regards the TNEB is concerned, the Tribunal in the case of CCE, Coimbatore Vs. TNEB Order No. 189 to 196/1997 in Appeal Nos. E/594 to 601/1995 held the contractors to be the manufacturers. In another case relating to TNEB Vs. CCE 1999 (106) ELT 499 (T), it was also held that the terms of contract showed that the real manufacturer is the contractor and not the Electricity Board ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the CENVAT Credit Rules so as to enable the original authority to allow credit, subject to verification. Accordingly, we remand the appeal for this limited purpose to the original authority who shall give an adequate opportunity of hearing to the appellants and allow them credit on inputs used in the manufacture of PSC poles subject to carrying out necessary verification. 6. As regards the penalty imposed on the appellants, we take a lenient view and since it was in dispute as to whether the appellants should pay the duty or the Electricity Board will pay the duty, we waive the penalty imposed on the appellants. 7. The appeal is thus partly allowed by remanding the matter to the original authority in regard to grant of CENVAT cred ..... X X X X Extracts X X X X X X X X Extracts X X X X
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