TaxTMI 
TaxTMI 
1998 (9) TMI 256
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....act as to whether the welding rectifier which the appellants are purchasing from the open market has to be considered as a component of complete welding machine along with welding torch and wire feeder or the same should be considered as a separate trading item. Consequently, whether the appellants would be entitled to the benefit of exemption Notification No. 175/86 or not and as to whether the demand is barred by limitation or not. 3. The Collector of Central Excise, Calcutta has held that a welding set comprises of three main components viz. (a) Rectifier, (b) Wire Feeder, (c) Welding Torch. The duty of the rectifier is to supply power to the whole set and to function as power source. The wire feeder supplies the welding materials ....
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....ing he has placed reliance on the decision of the Supreme Court in the case of Narne Tulaman Products (P) Ltd. v. C.C.E., reported in 1988 (38) E.L.T. 566 (S.C.). As regards the limitation the demand pertains to the period 30-1-1986 to 31-3-1986 and the show cause notice was issued on 4-1-1991. The Collector has justified invoking of larger period by observing that the appellant has wilfully and intentionally declared the rectifier as their trading goods inasmuch as they knew that no welding set/equipment can function without the rectifier. 4. On the other hand the appellants' contention is that rectifiers having been purchased by them from outside and simply supplied along with the welding torch and wire feeder. At no stage these rec....
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.... value of the same in the value of the final product. In the instant case no rectifier is being assembled with any other part so as to become an integral part of the assembly welding. In support of the above submissions, strong reliance has been placed by the appellant on the Tribunal's decision in the case of Telco Ltd. v. CCE, Pune reported in 1987 (32) E.L.T. 583 (Tribunal). It was held in the instant case that the power packs and the Ribetting Guns manufactured separately have their own identity. The mere fact that the two are connected by a pipe line of 15 inch to 20 inch does not result in manufacture and emergence of a new product having an identity distinctly different from the power pack and Ribetting Guns. No doubt the latter cann....
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....he ground that such a declaration that the rectifier was a trading good made by the appellant fully reflect upon their knowledge that the value of the same has to be added in the value of the final product. In respect of the limitation issue, reliance has been placed upon number of decisions. 5. We have heard Shri D.B. Desai, ld. Consultant for the appellants who vigorously argued on the above points before us. Shri T.P. Kumar, ld. SDR defended the Order of the Collector. 6. Ld. SDR has drawn our attention to Section Note 4 of Section XVI as also to page 1356 of H.S.N. the explanatory notes of Heading 85.15. He submitted that if pump and motor are supplied separately they would be assessed as pump and motor. But, if cleared toge....
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.... ways along with the other two machines. Rectifier is presumed to have discharged its duty burden at the place of its manufacture. In fact there is no dispute on this point. Rectifier, we also note, functions as a power source. Power source is required for function of any electrical machine which cannot function unless it is connected with the power supply. Mere this fact, in our opinion, will not make the rectifier a part or component of the welding set. The ratio laid down in the Telco's case even though the same was in the context of the erstwhile Tariff Item 68, is fully applicable to the facts and circumstances of the instant case. Reference to Section Note 4 of Section XVI by the ld. SDR is not relevant inasmuch as the same will apply....