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Shroff Brothers Shri Naval Magan Partner Versus C.C. E-Delhi-I

2016 (11) TMI 508 - CESTAT NEW DELHI

Clandestine removal of goods - Copper Wire and Super Enamelled Copper Wire - denial of exemption under N/N. 8/2003-CE dated 01.03.2003 - whether drawing of Copper Wire from Thicker Gauge to Thinner Gauge and Varnishing of the same for the purpose of insulations would amount to manufacture or not? - Held that: - the issue is decided by the Hon'ble Supreme Court in the case of Techno Weld Industries referred [2003 (3) TMI 123 - SUPREME COURT OF INDIA]. However Commissioner (Appeals) has distinguis .....

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. In fact the Board vide its Circular No. 720/36/2003 -CX dated 29/5/2003, has withdrawn its earlier Circular No. 570/7/2001 -CX dated 16/2/2001 which held to the contrary. - The issue of insulation stand settled by laying down that the same does not amount to manufacture. Varnishing of Copper Wire which lead to Supper Enamelled Copper Wire is for the purposes of increasing the conductivity of the Copper Wire, and the Copper Wire remains Copper Wire only. In the case of Lenzohm Electrical En .....

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16 - Ms. Archana Wadhwa, Member (Judicial) Shri M. Mullick, Advocate, for the appellant. Shri Dharam Singh, AR and Shri H.C. Saini, AR for the respondent. Per: Archana Wadhwa Briefly stated, M/s Shroff Brother were engaged in the manufacture of Copper Wire and Super Enamelled Copper Wire were previously registered with Central Excise Department and paying full rate of duty but surrendered the Registration in the month of September, 2002. A search was conducted in the factory premises of the appe .....

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d by him. His further statements were recorded and it was revealed that he had cleared Copper Wire and Super Enamelled Copper Wire worth ₹ 19,96,740/- involving Central Excise duty amounting to ₹ 3,19,478/- in a clandestine manner against parallel invoices without payment of Central Excise duty as they were not entitled for exemption under Notification No. 8/2003-CE dated 01.03.2003 as they opted for payment of full rate of duty during the financial year 2002-2003 Accordingly, a show .....

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thinner gauge does not amount to manufacture. (ii) That, with regard to Copper Wire coated with varnish, it has already been held that such activity does not amount to manufacture in the following judgments:- (a) M/s Shaktl Insulated Wire Ltd Vs. UOI-1982 (10) L T 10 (Bombay) (b) GE (India) Ltd. vs. CCE, Pune-1988 (10) ELT 362(T) (c) Lenzohm Electrical Engg. Co. Pvt. Ltd. Vs. CCE, Mumbai-II-2203(58) ELT 84 (CEGA T). Mum) (iii) That, where the process undertaken by them did not amount to manufac .....

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case of CCE Vs. Technoweld Industries - 2003 (155) ELT 209 (SC). I have gone through the facts and circumstances of the case and various submissions made by the appellants. I find that the appellants were engaged in the manufacture of two products name/y Copper Wire and Super Enamelled Copper Wire and they have challenged the impugned order on the grounds that the process of drawing of Copper wire from thicker gauge to thinner gauge is not a process of manufacture in view of the Judgement in th .....

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ction of Super Enamelled Copper Wire also did not amount to manufacture in the light of judgments as mentioned below - a) M/s Shakti Insulated Wire Ltd. Vs. UOI-1982(10) ILT 10 (Bombay) b) IGE (India) Ltd vs, CCE, Pune-1988 (10) ELT 362(T) c) Lenzohm Electrical Engg. Co Pvt. Ltd Vs CCE Mumbai-Il 2003(58) ELT 84 (CEGAT Mum) I find none of the above judgment is in respect of varnishing of the Copper Wire which leads to the manufacture of Super Enamelled Copper Wire and therefore ratio cannot be ap .....

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, not acceptable. Regarding the penalty imposed on appellant No. 2 I find that it is on record that he has dealt with the impugned goods by clearing them clandestinely without discharging Central Excise duty liability and thus liable for penal action under Rule 26 ibid In View of the above the demand of duty interest and penalties imposed by the adjudicating authority are therefore upheld. 4 Accordingly the commissioner (Appeals) rejected the appeals and hence the present appeals. 5. After heari .....

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