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CCE, Delhi-I Versus M/s Crystal Corporation

2017 (1) TMI 795 - CESTAT NEW DELHI

Manufacture - Section 2 (f) of Central Excise Act, 1944 - glazed panels - whether affixing duty paid processed and pre-cut glasses supplied by the client to the duty paid aluminium frames and panels with the help of sealant results in emergence of new product having new identity, character and use distinct from the inputs, namely, glass cut to size and aluminium frames of required dimensions? - Held that: - the duty demand is on glazed panels alleged to have been manufactured by the appellan .....

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the present case. In other words, the indivisible works contract talks about installation of glazed panels/curtain wall and not supply of any glazed panels - no manufacture taking place - appeal dismissed - decided against Revenue. - Excise Appeal No. 3193 of 2007 - A/50295/2017-EX[DB] - Dated:- 11-1-2017 - Shri Dr. Satish Chandra, President And Shri B. Ravichandran, Member (Technical) Shri Yogesh Agarwal, Authorized Representative (DR) for the appellant Shri D.K. Tyagi, Advocate for the respond .....

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t by the officers of DGCEI with reference to the activities of the respondent. On completion of investigation, proceedings were initiated against the respondent to demand Central Excise duty in respect of manufacture of glazed panels in connection with execution of various projects. The period involved is 2001-2002. The proceedings were concluded by Original Authority who confirmed Central Excise duty of ₹ 43,21,900/- on the respondent. He imposed equal amount of penalty under Section 11AC .....

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ving new identity, character and use distinct from the inputs, namely, glass cut to size and aluminium frames of required dimensions. He concluded that the process undertaken by the respondent does not merit to be termed as manufacture in terms of Section 2 (f) of Central Excise Act, 1944 and as such no duty liability can be imposed on the respondent. Aggrieved by this order, the Revenue is in appeal. 2. The main grounds of appeal by Revenue can be summarized as below :- (i) parts or structures .....

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activity ; (ii) for the purpose of execution of contract, the especially designed aluminium frames are fabricated on the ground at the site of the project from duty paid raw materials i.e. aluminium extrusions. The glass is fixed on such aluminium frames and that only thereafter such fully glazed panels are installed over the building. The duty paid panels used in the process of erecting curtain walls/ structural glazing are well known in market as separate commodity. 3. Learned AR elaborated t .....

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ecific to the designs and requirements of the client. These are made according to the exact specification as per the physical requirement of the building and they are affixed as per the designs already prepared. No new product emerges as a distinct marketable commodity in this process. The learned Counsel also submitted that the reliance placed by the Revenue on the decision of Tribunal in Mahindra & Mahindra (supra) is not appropriate. In the present case, the Revenue failed to establish wh .....

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admitted facts are that the respondent were engaged in the manufacture of blank aluminium panel out of anodized aluminium extrusions in their factory at Bhiwadi. They were also engaged in design fabrication, supply and installation of curtain wall/structural glazing by building glass facades system over buildings by which the external face of the building is enclosed with glass/metal so as to given appearance that the walls are made up of glass/aluminium. The glass facades were built by unitized .....

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zed panels are installed over the building with brackets, nuts and bolts as per the pre-determined sequence and design. There is no dispute in respect of activities undertaken by the respondent. The individual components i.e. aluminium frames and pre-cut glasses are nothing but parts and components of aluminium glass frame fagade. They are designer made and cannot be put into use in any other fabrication. In other words, the aluminium frames cut to specific dimension and the glass cut to specifi .....

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cords that the proposition that affixing of aluminium frame and glass results in a new product namely glazed panel is ill-founded. It is recorded that the glazed panel with glass does not serve any purpose other than the purpose served by the aluminium frames/glass cut to size. As these items were specifically cut as per the design and are affixed in civil structure the marketability of the product has to be established. The impugned order also recorded the terms of the work order to state that .....

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liability on the activity of making structures of Iron and Steel under Tariff Heading 7308. It was held that parts of structures are prepared and disassembled, the members thereof will be angles, roads etc. prepared for use in such structure. These are not angles or plates merely cut or drilled. These are identifiable articles of types of parts of structures covered under heading 7308. The Revenue is drawing a parallel to the present case based on the above said decision. We note the facts of th .....

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