2009 (4) TMI 754

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....Ms. Joy Kumari Chandar, JCDR, for the Respondent. [Order per : T.K. Jayaraman, Member (T)]. :- The appellants are registered as small scale industry. During the year 2002-2003 their turnover was less than Rs. one crore. Consequently there was no duty liability. They actually manufactured items like penstock pipes, radial gates, vertical lift gates etc. meant for hydro electric projects. In t....

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....Therefore Revenue proceeded against them for recovery of duty and also initiated penal proceedings. The adjudicating authority passed an Order demanding duty of Rs. 29,66,803/- and equivalent penalty under Section 11AC has been imposed. Interest under Section 11AB has been demanded. The appellants approached the Commissioner (Appeals) on the ground that impugned items would not be excisable based ....

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....;     Certain items were partly fabricated in their Unit at Hyderabad and partly fabricated at site and then installed/embedded at site. *       Certain items such as electric motors, wire ropes, worm reduction gearboxes, electro-mechanical breaks are purchased from the open market or from original equipment manufacturers. In view of the abov....

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.... by the appellants, so long as they are movable, they would be liable for duty. 4. On a very careful consideration of the issue, we find that duty cannot be demanded on the value of the entire supplies made to Sandur Power Company. We are of the view that duty can be demanded from the appellant only on the items fabricated by them in their unit at Hyderabad. As regards fabrication done at ....