2006 (8) TMI 409

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.... and Erectors) on 24-9-03. They were required to show cause as to why they should not be jointly and severely considered as manufacturers of pipes rolled at the premises of NTPC Unchahar and why the Central Excise duty not paid on the said goods manufactured by them should not be demanded. Penal and interest clauses were also invoked by the issuing authority. In the order-in-original issued on 18-11-04, the Additional Commissioner of Central Excise had concluded that the appellant are the real manufacturers of the pipes with the following observations :- "....In MOM dt. 19-8-96 it was agreed upon that RIL will supply the MS Plates required for making pipes for LPP system. RIL shall give four MG sets to M/s. Varshney Engineers and Erector....

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....e applicant states that what was manufactured by sub-contractor was not pipes but only shells which are not excisable. He also refers to the show cause notice and pleads that 'findings' of the show cause notice that there could be two manufacturers manufacturing the same goods as misconceived. He also states that the said show cause notice is clearly time barred in view of the fact that bills were raised by the sub-contractor on 4-2-97 and onwards ending on 31st December, 1998 (reconciliation bill) whereas the show cause notice is dated 24-9-2003 and was received by them on 30-9-2003. According to him the show cause notice was thus clearly time barred as it has invoked the extended period of section 11A. 4. The learned authorised de....

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....sp;We find that prima facie, conclusion reached by the learned Additional Commissioner, which was confirmed by the Commissioner (Appeals) is acceptable. As regards the contention that the goods were not excisable, we find that the learned Additional Commissioner in his order has made the following observations, which has been rightly accepted by the Commissioner (Appeals) : "...A perusal of the "Annexure III" submitted by RIL itself made it clear that so called shell manufactured are nothing but pipe having larger dia. The main use/function of pipe is to allow through it the flow of liquid/gas. Here also the pipe is used for flow of water through it. The use of the pipe remains the same whether it is embedded under ground or not. The pip....