TMI Blog2016 (1) TMI 435X X X X Extracts X X X X X X X X Extracts X X X X ..... e manufacturing process is not complete when the goods were removed for testing. After testing the goods no longer exist. They are destroyed and turned into scrap. Appellant clears scrap on payment of duty. Thus, the process of destructive testing being integrally connected with the ultimate production of final product, it cannot be said that appellants have cleared any goods liable to duty. - Impugned order is not sustainable - Decided in favour of assessee. - Appeal No. E/2728/2007-EX(DB) - Final Order No. A/53319/2015-EX(DB) - Dated:- 19-10-2015 - Sulekha Beevi C S, Member (J) And B. Ravichandran, Member (T) For the Appellant : Shri Bipin Garg, Adv For the Respondent : Shri S Nunthuk, JCDR ORDER Per Sulekha Beevi CS ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... turer to remove excisable goods manufactured in his factory to another premises without payment of duty, for carrying out tests, or any other process not amounting to manufacture. There is no dispute that the goods were removed for job work/testing according to the provisions of law. It is the case of the department that as the appellants have received the value of the tower including cost of testing from the buyer, they are liable to pay the excise duty. It is not disputed that the goods were removed for testing. It is also not disputed that in the process of testing the goods/towers were destroyed and were returned as scrap only. Per se there was no clearance of excisable goods. It cannot be said that the towers when removed for job work/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 43, the issue was whether the length of three meters of cables cut and removed from each drum for destructive testing is liable to payment of duty. The Tribunal observed that as there was stipulation in the contract for such testing the goods became excisable only satisfying destructive testing. This decision was upheld by the Apex Court in 2001 (127) ELT A49 (S.C.). 8. In the instant case, unless the towers undergo destructive testing they are not saleable to the buyer/Rajasthan Rajya Vidyut Prasaran Nigam Ltd. Thus if not saleable, it only means that the process of manufacture is incomplete and the duty of excise is not leviable on them. Merely because the appellants received the cost for manufacture along with testing charges it canno ..... X X X X Extracts X X X X X X X X Extracts X X X X
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