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2015 (10) TMI 2349 - CESTAT MUMBAI

2015 (10) TMI 2349 - CESTAT MUMBAI - TMI - Manufacture - converting H.R. Coils/strips into C.R. Strips - whether the activity undertaken by the appellants amounts to manufacture or not as per Section 2(f) of the Central Excise Act, 1944 - Held that:- On the basis of the records available, the ld. Commissioner has not given independent finding thereon, who is at liberty to examine the relevant records and thereafter to arrive at a decision whether the activities undertaken by the appellant amount .....

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h the directions of the Hon'ble Apex Court, moreover, have also not examined the co-relation of the diary A-38 with the corresponding invoices, therefore, the matter needs examination at the end of the adjudicating authority. Therefore, we set aside the impugned order and remand the matter back to the adjudicating authority - Decided in favour of assessee. - E/994, 995, 996 & 997 of 2006-EX(DB) - Dated:- 12-8-2015 - Ashok Jindal, Member (J) And B. Ravichandran, Member (T) For the Appellants : Sh .....

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se was booked against the main appellant for duty evasion allegedly clandestine removal of C.R. Strips. A show cause notice was issued on the ground that the appellant has manufactured C.R. Strips out of H.R. Coils and Strips and cleared the same without payment of duty. The matter was adjudicated and demand as proposed in the show cause notice was confirmed along with interest and penalties were also imposed on the appellants. The said order was challenged by the appellants before this Tribunal .....

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posed of the civil appeal filed by the Revenue to consider and record findings on the following questions and disposed of the matter before them:- "Whether the Excise authorities have led any evidence before the first adjudicating authority on the question as to whether cold rolled strips are the result of a process of manufacture undertaken by the respondents, or whether the material referred to in the order of the Assistant Commissioner is based upon his own personal knowledge or is based .....

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h interest and penalties were imposed on all the appellants. Aggrieved from the said order, the appellants are before us. 4. Ld. Counsel for the appellants drew our attention to the order of the Hon'ble Apex Court wherein the matter has been remanded to the adjudicating authority and the adjudicating authority has not complied with the directions of the Hon'ble Apex Court and confirmed the demand. He further submits that on merits also, the adjudicating authority has not considered the c .....

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had investigated the matter and subsequently a show cause notice was issued by the ADGCEI, New Delhi to demand duty of excise on the goods allegedly cleared clandestinely and also proposed penalties and recovery of interest on duty evaded. It is to be noted that during the investigation of the case and in the earlier adjudication proceedings before the then Commissioner, C.Ex., Adj., New Delhi, the notices did not even once dispute the excisability of their finished product namely C.R. Strips. I .....

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efore, there was never any occasion for the department to examine the issue whether the process of cold rolling amounted to manufacture. The department could have examined this issue only if the notices had approached with a plea that their activity of cold rolling did not amount to manufacture. Therefore, considering the above position in this case, the burden was on the noticees to make out a case that their activity of cold rolling did not amount to manufacture. Only in such a situation the b .....

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ndertaken by them merely reduced thickness of H.R. coils/strips. Shri Raman Gupta, Director of Perfect Strips Ltd. in his statement dated 7.4.97 recorded under Section 14 of the Central Excise Act, 1944 explained the various stages of processes undertaken as under:- (i) The Hot Rolled Coil/Strip is washed with HCL acid that is known as Pickling. (ii) After Pickling H.R. Coils are rolled in the Rolling Mill to get the required thickness. (iii) After rolling the material is annealed in bell furnac .....

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clearances of C.R. Strips from their factory all these years, if now they are to argue that they were merely reducing the thickness of H.R. Coils/strips which did not amount to manufacture ,then the onus was on the noticees to adduce evidences before the department in this regard to show that no new and distinct product emerged due to processes undertaken by them. The noticees have clearly failed to do so. The Hon'ble Supreme Court in Civil Appeal No.7165 of 2000 in the case of M/s. Steel S .....

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l excise. 13.4 I proceed to examine whether various processes to which H.R. coils/strips were subjected to resulted in a new and distinct product in terms of Section 2 (f) of the said Act. Firstly, if it was a simple case of mere reduction of thickness of H.R. Coil/strips as claimed by the noticees, there was no need to call the end product by a new name i.e. C.R. Strips. It could have been described as H.R. Coils/strips of reduced thickness. The fact that the end product has a recognition of it .....

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8 has been co-related with the entries made in the RG-1 Register. However, except making the bald statement, the noticees have not given any details co-relating each and every entry of diary A-38 with the entries made in the RG-I register so that submissions in this regard could be examined. This clearly shows that the noticees have failed to carry out such an exercise to prove their innocence in this regard." 9. On going through the above observations of the ld. Commissioner, we find that .....

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