1985 (8) TMI 190

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....ing motors from outside and fitted fan blades and converted them into blowers. The blowers themselves were built into ABT Oil cooler and supplied to I.C.F. as air blast transformer oil coolers. The Department's case is that there was no declaration regarding the manufacture of blowers which were captively used in the building of transformer oil cooler. A show cause notice was issued on 29-9-82 invoking the extended period under Rule 9(2) of the Central Excise Rules, 1944 for the above demand. Though the notice also refers to violation of Rules 52A, 53, 173B, 173C, 173P and 173G in the totality of circumstances of the case, the Collector did not impose any penalty under Rule 173Q but confined his order to one of demanding duty. In appeal thr....

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....th electric motors or rotors from the amount of duty that has been paid on the motor. This exemption is obviously available by way of reduction in the quantum of duty payable on electric fans at the time of their clearance. In the present case, no duty was at all paid at the time of clearance which is being demanded now in terms of the Collector's order. Considering the uniqueness of the motors involved and the one to one correspondence between electric motor, electric fan the claim of the party for reduction in calculating the amount of duty payable on the electric fan to the extent of duty paid on the electric motors is a valid one so long as Notification No. 124/65 was in force i.e. upto 31-7-80. However, with effect from 19-6-80 the pro....

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....rs was not necessary. In support he relied on the decision in the case of Air India Corporation v. Collector of Central Excise, Calcutta-1985 E.L.T. 206. S.D.R., on the other hand, stated that mere intimation regarding manufacture is not sufficient. The provisions of Rule 173 (B), (C), (F) and (G) have not been followed. Hence action under Rule 173Q is maintainable. In regard to set off he urged that the prescribed procedure under Rule 56A has not been followed; in respect of the past, no correlation is possible. 5. The letter dated 21-9-78 is an intimation regarding total production and consumption of fans for use in ABT coolers being less than Rs. 4 lakhs in a financial year and seeking exemption from licensing. Hence, the Departm....