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Tata Motors Ltd Versus Commissioner of Central Excise, Pune-I

2017 (11) TMI 477 - CESTAT MUMBAI

Manufacture - iron and steel structure and parts thereof required for construction of factory building/additional factory in their factory premises at Pimpri - Held that: - M/s. TELCO contracted M/s. Shapoorjee Pallonjee Pvt Ltd for construction of shed and their premises as per designed by provided by the TELCO. M/s. TELCO has purchased structural steel material, angle, channel etc and provided the same to M/s. Shapoorjee Pallonjee Pvt Ltd who after cutting, drilling, bunching etc used the same .....

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R Per : Raju The Appellant M/s. Tata Motors Ltd are in appeal against confirmation of demand and imposition of penalty in respect of manufacture of various articles of iron steel. 2. Ld. Counsel for the appellant argued that five show cause notices were issued by Revenue alleging that appellant alongwith their Contractor namely, M/s. Shapoorjee Pallonjee Pvt Ltd had manufactured and cleared various articles of Iron Steel like bridges and bridge sections, lock gates, towers, lattice masts, roofs, .....

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ppeal by setting aside the order of the Asstt. Commissioner and confirmed the demand and imposed penalty on the present appellant. Aggrieved by the said order appellant are before Tribunal. 2.1 Ld. Counsel for the appellant argued that in the identical case Hon ble Bombay High in case of Shapporji Pallonji &Co. Vs. Union of India [2005(192)ELT 92(Bom)] and held that in respect of similar activity no duty liable would arise. He pointed out that in case of Commissioner of Central Excise, Pune .....

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. He pointed out that said decision was approved by Hon ble Apex Court as reported in [2015(317)ELT A160(A.P)]. Ld. Counsel also relies upon the decision in case of Alumayer India Pvt Ltd Vs. Commissioner of Central Excise, Mumbai[A/88110-88111/17/EB dated2-3-2017 wherein decision this Tribunal in case of Mahindra & Mahindra has been distinguished. He further argued that in their own case identical issue, Tribunal has vide order reported in [2006(202)ELT 812] held that such activity would no .....

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on behalf of M/s. Shapoorjee Pallonjee Pvt Ltd. 4. We have gone through rivals submissions. 5. We find that M/s. TELCO contracted M/s. Shapoorjee Pallonjee Pvt Ltd for construction of shed and their premises as per designed provided by the TELCO. M/s. TELCO has purchased structural steel material, angle, channel etc and provided the same to M/s. Shapoorjee Pallonjee Pvt Ltd who after cutting, drilling, bunching etc used the same for construction of shed. In the identical circumstances in the app .....

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t. However, if an article is merely affixed to the earth for its beneficial user or enjoyment it is not immovable property. As laid down by this Court, in the case of Sunflag Iron and Steel Co. Ltd., the assessee carried out activity which was in pari materia with that of the activity of the present petitioners. In the said case also, the assessee had entered into an agreement for supply, fabrication and erection of structural steels and cladding works of Rolling Mills and steel melting shop (a .....

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e to pay excise duty by taking the view that it was manufacturing or producing excisable goods, which fell within the applicable Tariff entry in a well considered judgment in the CEGAT held that, in the first place, the activity of fabrication of the raw material indicated that it did not amount to manufacture and it was merely an act of fabrication or facilitation of the iron rods, angles, channels and so on for being fitted into the structure that was being built. While taking this view, the D .....

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ld not have been any difficulty in arriving at the correct decision. Having not done so, there is an error. We are, therefore, of the view that in both the cases, fabrication of structurals at the site of the principal by using raw materials supplied by the principal did not amount to "manufacture", nor was it done at "factory" nor were the goods saleable or capable of being brought to the market for being sold. We further notice that in both the cases the fabrication was wit .....

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Steel Co. Ltd. came to be followed by another Bench of this Court in the case of Gannon Dunkerley & Co. Ltd. v. Union of India, 2003 (156) E.L.T. 467 (Bom.) Both these judgments have been recently affirmed by the Apex Court in the Civil Appeals carried at the instance of the Revenue in Civil Appeal bearing Nos. 7533 and 7534 of 2001, vide its common order dated 28-8-2003, 2004 (164) E.L.T. A178 (S.C.). Both appeals were dismissed by the Supreme Court by common speaking order with the result .....

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Vs. Richardson & Cruddas Ltd[2012(280) ELT 249(Tri. Ahmd.)]. 5.1 It is seen that Original adjudicating authority has given the findings on nature of activity undertaken by the appellant. He has specifically observed that he has physically inspected the factory shed and also perused the photographs of in-progress factory block work in the premises of the appellant. After this exercise he has come to the conclusion that activity undertaken by the appellant are similar to those activities as we .....

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cutting, drilling, welding, riveting. Upon physical inspection of the factory sheds since constructed and a few photographs of the in-progress factory block work in the premises of M/s. TELCO, my observations are as under: i) The construction activity of factory sheds involves usage of various iron and steel primary materials such as I-beams, channels, plates, angles round bars, square bars and fasteners. ii) The above described raw materials are cut to various sizes and shapes and holes wherev .....

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