TMI Blog2018 (6) TMI 863X X X X Extracts X X X X X X X X Extracts X X X X ..... o duty is payable - Held that:- Liability for excise duty is to be determined on the basis of the activity carried out in the appellant s factory and not on the basis of the use of such products after clearance from the factory. Inasmuch as the storage tanks have arisen in the factory of the appellant, the liability for payment of excise duty gets fastened on the appellant. The arguments regarding the tanks being not marketable is also to be discarded since the tanks are in fact procured by the customer i.e. IOCL/ HPCL even though in the form of job work contract. Appeal dismissed - decided against appellant. - Ex. Appeal Nos. 50511 to 50513 of 2018 & Ex. CoD Application Nos. 50242 to 50244 of 2018 - A/51966-51968/2018-EX[DB] - Date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as details of supply of raw material to the appellant, from the suppliers i.e. IOCL/ HPCL. The demand for Central Excise duty was confirmed in the impugned order. The adjudicating authority took the view that the activities undertaken by the appellant in their factory involving cutting the supplied steel sheets to the required sizes, and welding it to the required specifications resulting in tanks of the required sizes, would amount to manufacture in terms of Section 2(f) of the Central Excise Act, 1944. Further, the adjudicating authority proceeded to determine the value of the tanks so fabricated by the appellant in terms of Rule 6 of the Central Excise Valuation Rules by adding the cost of the material to the job charges received by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the appellant and using them the latter, is required to fabricate the storage tanks of the required capacity and return the manufactured tanks to IOCL/ HPCL. From the nature of the work in the appellant s factory, it is evident that the appellant has undertaken the activity of manufacture i.e. activity of converting steel sheets into the form of storage tanks. Storage tank is commodity which is liable for payment of excise duty under CETH 73090090 of the Central Excise Tariff. Consequently, the liability of excise duty on the tanks fabricated by the appellant is established and hence the same is sustained. 7. Next we deal with the arguments advanced on behalf of the appellant that such storage tanks are embedded to the earth and hence ..... X X X X Extracts X X X X X X X X Extracts X X X X
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