2005 (10) TMI 323

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.... Shri Tiwari, JCDR, for the Respondent. [Order per : Jyoti Balasundaram, Vice-President]. -  The appellants herein are Engineering Contractors, who undertake various erection and assembly jobs of different type of engineering goods. An Information was received in the Central Excise Collectorate, Nagpur that the appellants erected/manufactured and commissioned 2 Dragline machines at the....

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.... forty-seven only) and penal action under Sections 173Q and 226 was issued to the appellants on 4th July, 1994. A corrigendum was issued proposing recovery of interest under Section 11AB and penalty under Section 11AC of the Central Excise Act. Show Cause Notices were also issued to M/s. Western Coalfield Limited and others, proposing penalty under Rules 209A and 210 of the Central Excise Rules. A....

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....t the benefit of exemption in terms of Notification No. 182/87 was not available for the reason that the machines were produced in an open area of mines of Western Coalfield Limited and not in a workshop situated in mines (d) that the demands raised against Coromandal were barred by limitation (e) penalty also was not sustainable against Coromandal (f) ordered confiscation of machines with an opti....

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....ion order. However, that does not settle the issue of manufacture and admissibility of exemption, which have to be independently considered. We find that the components of dragline machines have been assembled at a site and new product with different name, character and use had come into existence and therefore the findings of the Commissioner that the dragline machines are manufactured goods liab....