2012 (12) TMI 583 - AT - Central Excise

Tribunal rules in favor of appellant on Central Excise duty exemption for on-site fabrication

M/s ESSAR PROJECT LTD. Versus COMMISSIONER OF CENTRAL EXCISE, BHAVNAGAR

M/s ESSAR PROJECT LTD. Versus COMMISSIONER OF CENTRAL EXCISE, BHAVNAGAR - 2013 (287) E.L.T. 231 (Tri. - Ahmd.) Issues:1. Whether the fabrication of miter bends and reducers of iron & steel from duty paid pipes amounts to manufacture and attracts Central Excise duty liability.Analysis:1. The appellant was engaged in manufacturing excisable goods without obtaining Central Excise registration. They manufactured and cleared miter bends of iron & steel at their site for captive consumption. The value of the goods was determined as per Central Excise Valuation Rules, and duty was demanded along with interest and penalties. The lower authorities confirmed the demand, leading to the appeal.2. The appellant argued that the miter bends were manufactured at the site's workshop for a government-approved water supply project. They contended that the lower authorities erred in concluding that the goods were not manufactured at the site. Citing relevant case law, the appellant claimed that bending duty paid goods at the site does not constitute manufacturing liable for duty.3. The Department argued that the bends and reducers were manufactured at the workshop for captive consumption, falling under a specific chapter heading, requiring Central Excise registration and duty payment.4. The Tribunal analyzed the facts and the show cause notice, which specified the site of fabrication. They noted that the goods were fabricated at the site for use at the site, aligning with precedents where such activities were not considered manufacturing liable for duty. Relying on previous judgments, the Tribunal held in favor of the appellant, setting aside the lower authorities' decision and allowing the appeal.