TMI Blog2015 (2) TMI 306X X X X Extracts X X X X X X X X Extracts X X X X ..... in the flatten form sometime in running length and sometime cut into pieces of specific length. We have also seen the sample of the same. The flatten PVC tube can be used for packing and other purposes. However, after cutting and forming, the said sleeves cannot be used for packing purpose but can be used only for sealing a plastic container of specific dimensions. We have also gone through the report of the Chemical Examiner wherein it has been clarified that the inputs are bi-axially oriented plain sleeves while the tube/final product is fully oriented blown/formed sleeve for the purpose of shrink wrap. It is clear from the sample once the sleeves is formed as above, these cannot be used for any purpose other than sealing plastic containe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... extended period of limitation cannot be invoked. If the appellant was eligible for getting the benefit of CENVAT Credit the actual demand will come down substantially. We therefore remand the matter to first adjudicating authority to examine the claim of the appellant in respect of CENVAT Credit on inputs. In case they are eligible for the same, recompute the duty liability and accordingly, re-determine the interest. Keeping in view the nature of dispute, as also facts and circumstances, in our view, no penalty is warranted - Appeal disposed of. - Appeal No. E/673/05 Mum - Final Order No. A/116/2015-WZB/EB - Dated:- 14-1-2015 - Shri M. V. Ravindran And Shri P. K. Jain,JJ. For the Appellant : Shri V. B. Gaikwad, Advocate For ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fied with the said order the appellant is before this Tribunal. 2. Learned Counsel s main argument was that the process of forming is a simple process wherein the shape of the PVC sleeves received by them is changed or formed and these sleeves are thereafter sold by them to their customers who uses the said sleeves for sealing their plastic containers. Learned Advocate contended that no new commodity has come into existence from the said the process. The goods continued to be PVC sleeves only and it is only the shape that has changed. Learned Counsel s second argument was that the goods before forming and as also after the forming continues to be classified under the same heading and therefore the process will not amount to manufacture. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and sometime horizontally cut PVC sleeves. PVC rolls can be used for normal packing of any goods. However, the goods so received are horizontally cut in the required width and thereafter put on the moulds. The moulds are heated to a required temperature and the sleeves are kept on the moulds for specific time wherein the shape of the PVC sleeves gets formed and gets converted into shape required for sealing. Thus the tube is a sealant sleeves while the input is normal PVC sleeves. It was further submitted that the inputs are bi-axially oriented plain sleeves and on formation these gets to fully oriented blown/formed sleeve for the purpose of shrink wrap as is evident from the report of the Chemical Examiner. Thus even the characteristics o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... length and sometime cut into pieces of specific length. We have also seen the sample of the same. The flatten PVC tube can be used for packing and other purposes. However, after cutting and forming, the said sleeves cannot be used for packing purpose but can be used only for sealing a plastic container of specific dimensions. We have also gone through the report of the Chemical Examiner wherein it has been clarified that the inputs are bi-axially oriented plain sleeves while the tube/final product is fully oriented blown/formed sleeve for the purpose of shrink wrap. It is clear from the sample once the sleeves is formed as above, these cannot be used for any purpose other than sealing plastic container. Hon ble Supreme Court in the famous ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed. We agree with the learned A.R. that the knowledge of the department is not relevant for determining whether extended period of limitation can be invoked or not. However in the present case, there is no evidence to indicate that there was willful intention to evade duty. In fact, appellant has also represented their case to high authorities explaining in detail the process and why in their view it does not amount to manufacture. Keeping in view, over all facts and circumstances of the case, we are of the view that the ingredients for invoking the provisio to Section 11A are not satisfied and therefore extended period of limitation cannot be invoked. 5.2 Another contention of the learned Advocate was that the inputs were duty paid and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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