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2016 (2) TMI 250 - CESTAT NEW DELHI

2016 (2) TMI 250 - CESTAT NEW DELHI - 2016 (340) E.L.T. 241 (Tri. - Del.) - Duty liability - Manufacturing activity or not - activity of cutting and welding of steel angles - galvanizing steel items - Job work - Held that:- Regarding the demand of duty from the appellant for galvanizing work done by the job worker, the original authority stated that certain processes like cutting welding were done before they are sent to galvanizing. This observation has not been supported by the original author .....

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rror in his finding. - In the statements of the proprietor of the appellant's firm various categories of the items and nature of process undertakes and nature of process undertaken on such items were given. It is necessary for the original authority to examine the processes carried out category wise and to give finding on such process resulted in production of totally a new identifiable and marketable product falling under specific classification in tariff. We find that the original authorit .....

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passed by the Commissioner, Central Excise, Ludhiana. 2. Brief facts of the case are that the appellants are engaged in trading of steel angles, channels, etc. and are also engaged in cutting welding of these steel angles, channels apart from getting these items galvanized by job worker. Based on certain information, the officers of Central Excise Ludhiana conducted investigation relating to non payment of central excise duty by the appellants. The proceedings were initiated against the appella .....

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e angles, channels, etc. and are also engaged in the cutting and welding of these items as per requirement of the buyers. They get these items galvanized, as and when required, by the job worker. The appellants do not have any facility for extensive fabrication of steel structure or for galvanizing steel items. Learned Counsel submitted that the department's case is that all items cleared by the appellants are liable to central excise duty because: (a) cutting and welding resulted in new str .....

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ied out by the appellants which will result in commercially identifiably new product liable to central excise duty. The original authority quoted certain description of the products mentioned in their invoices. These descriptions are as per indent placed by the buyers which are actually products which buyers intends to make out of cutting and wielding products supplied by the appellants. 4. Learned Counsel stated that galvanizing work on steel items were carried out by their job workers. Galvani .....

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ginal authority to examine whether there was manufacturing activity in respect of each of the items sold. It was found that the argument of the appellant that they cannot be held liable for manufacturing process done by the job worker has strong force and should be examined by the Revenue. The adjudicating authority was directed to examine excisability of the product sold by the appellants by grouping like goods together and giving clear finding whether the process amounts to manufacture and spe .....

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89090. Reliance was placed on the description in the invoices which indicated that MS Box, channels fabricated, Joist channels fabricated, galvanized structures etc. Apparently the term fabricated used in the invoice led to the conclusion by the adjudicating authority that there is manufacturing activity. This aspect has not been explained. 9. No enquiry appears to have been conducted from the buyers of these items and on which state these items were cleared by the appellants from their unit. Th .....

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