2003 (3) TMI 618

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.... mild steel (MS) pipes and were availing the benefit of exemption notification No. 1/95-C.E. dated 4-1-95. Appellants cleared galvanised pipes for Domestic Tariff Area (DTA) without payment of duty. Show cause notice was issued to the appellants asking for duty on the galvanised M.S. pipes cleared for DTA. The adjudicating authority confirmed the demand and imposed the penalty. The appeal filed by the appellants was also dismissed. 3. Heard both sides. 4. The contention of the appellants is that they were only undertaking the process of galvanising, which does not amount to manufacture under Section 2(f) of the Central Excise Act. 5. Appellants were bringing MS pipes and zinc without payment of duty under notification No. ....

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.... process of galvanising did not amount to manufacture and thus they were not liable to pay any central excise duty. 7. In para 9.9(B) of the Export Import (Exim) Policy, the unit was required to pay applicable duties and taxes on the sale of goods in DTA and permission given by competent authority for such sale was subject to this condition of payment of applicable duties and taxes. The exemption from the payment of customs duty/excise duty to the inputs brought by EOU was for the manufacture and packing of articles used solely for export. 8. The provisions of notification No. 1/95-C.E. provide that specified excisable goods enjoyed exemption from payment of central excise duty only when they were brought in connection with, amo....