TMI Blog2012 (8) TMI 691X X X X Extracts X X X X X X X X Extracts X X X X ..... t in the plea of the Department that steel tubular poles cleared on payment of duty by the respective assessees were not leviable with excise duty. As the appellants used duty paid inputs for the production of their final product which was cleared to the customers on payment of excise duty & department having accepted the excise duty on the final product cannot be permitted to deny cenvat credit on the inputs used for the manufacture of the final product on such a technical plea - in favour of assessee. - Central Excise Appeal No.871 to 876 of 2009 - - - Dated:- 4-7-2012 - Mr. Justice Ajit Bharihoke, Mr. Rakesh Kumar, JJ. Present for the appellant : Shri R.K.Verma, A.R. Present for the respondent : Dr. A.S.Gill, Advocate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded with M.S. cap and bottom portion is provided with base plate. 4. The Department taking note of the judgment of the Supreme Court in the matter of M/s Hindustan Pole Corporation vs. C.C.E. 2006 (196) ELT 400 was of the view that poles produced and cleared by the respondent were not the result of of manufacturing process. Accordingly, the respective respondents were served with show cause notices as to why cenvat credit availed by them may not be disallowed and the demand may not be confirmed against them. The notices also proposed imposition of penalty. 5. The respective jurisdictional authorities vide separate order in original confirmed the duty demand raised in the show cause notices against the respondents. 6. The respondents p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... above, it is obvious that after swaging and welding of pipes of different diameters, a new product known in the market as electric pole comes into existence which has a character and was distinct from the pipes of various diameters used as Inputs, as such, the electric poles are the result of manufacturing process. In support of this contention, Dr. Gill has relied upon the judgment of the Supreme Court in the matter of Prachi Industries vs. C.C.E., Chandigarh 2008 (225) ELT 16 (SC). In the alternative, Dr. Gill, Advocate has submitted that even if for the sake of argument it is assumed that fabrication of pole does not amount to manufacture then also the Department is not justified in disallowing the cenvat credit availed on the input used ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct comes into being which is known in the commercial parlance as steel tubular pole which has character and was distinct from MS black Tube/pipes. This process in our view amounts to manufacture and as such we do not find merit in the plea of the Department that steel tubular poles cleared on payment of duty by the respective assessees were not leviable with excise duty. In our aforesaid view, we find support from the judgment of Supreme Court in the matter of Prachi Industries (supra). Thus the impugned orders of Commissioner (Appeals) cannot be faulted. 11. Even otherwise if for the sake of argument it is assumed that the final products cleared by the manufacturing appellants emerged from a process not amounting to manufacture then also ..... X X X X Extracts X X X X X X X X Extracts X X X X
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