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TMI Blog2017 (3) TMI 549X X X X Extracts X X X X X X X X Extracts X X X X ..... u The appellants, M/s Auto Valves and Engine Components Ltd., were engaged in the activity of converting steel raw material into semi-finished valves. According to the Director of the company, the following activities are carried out in their premises: - "We are using mainly valve steel such as EN 52, EN24 and NI60 stellite rods. EN 52 is basically Silicon and Cluomium steel. which can withstan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trude and then make it to the required shape and then immediately tamper in oil to harden it. After hardening it is transferred into a tampering furnace to tamper it to the requited hardness. After tampering the valve is cut to required length and then it is transferred to the straightening machine where the valve is straightened. The valve stem is ground on a continuous grinder. After stem grindi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sent to the principal manufacturer of valve in Kanpur where the finished valves are produced. The appellants were not registered under Central Excise and hence, a show-cause notice demanding duty on this activity was issued. The same was confirmed and apart from the confirmation of demand and interest, equivalent penalty under Section 11AC was also imposed. The goods seized during the search were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 96 and there is no requirement of any procedural formality under the said notification. It has also been argued that they were entitled to Notification No. 84/95-CE also. 4. Learned AR relied on the impugned order. 5. We have gone through the rival submissions. We find that the principal requirement for availing Notification No. 214/86 or Notification No. 84/95 is that the principal manufacturer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t cutting the raw material into small slugs by removing surface defects followed by process of extrusion to bring it to required shape followed by hardening the same in oil followed by tampering and then cutting to the required length followed by straightening and grinding on a lathe. These processes result in a substantial advance stage of manufacture of valves. The argument that there is no acti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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