2010 (1) TMI 1056

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....spondents M/s. Boiler Tube Company Pvt. Ltd. (hereinafter referred as BTCPL for short) had imported "Pipes" and "Connectors" and welded them for use by M/s. ONGC for off-shore oil exploration/exploitation. The department took the stand that process of welding the connectors to the pipes in the Customs Warehouse amounts to manufacture and therefore, BTCPL should have discharged Central Excise duty ....

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....the connectors with the pipes, a new product namely "Casing Pipes with Connectors" emerges. Further, he also submits that BTCPL themselves while making their offer to ONGC had undertaken to manufacture and supply of casing pipes, Therefore, this amounts to admission by BTCPL themselves that the process undertaken by them amounts to manufacture. Further, the fact that the BTCPL applied for permissi....

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....d the records in the case. Contrary to the submissions made by the learned SDR, we agree with the Commissioner that the decision of this Tribunal in the case of Mustan Taherbhai (supra) is applicable to the present case. In the case of Mustan Taherbhai (supra), the Tribunal had held that manufacture of ocean going vessel in India in Customs Bonded Shipyard is same as if the vessels have been manuf....

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....ting of the pipes with rust corrosion preventing chemicals does not amount to manufacture in view of the decision of the Hon'ble Supreme Court in the case of Union of India v. DCM reported in 1977 (1) E.L.T. J-199. In this case the Hon'ble Supreme Court had held that a process amounts to manufacture if a new product having distinctive name, character or use has resulted and emerged. In the absence....