2011 (6) TMI 641

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....ndra & Mahindra. They received Cage Bearing Trans Drive and Rear Axle Oil Seal Retainer from M/s Mahindra & Mahindra on their returnable delivery challans cum gate pass for the purpose of machining. After carrying out the machining job on the said goods they returned the same to M/s Mahindra & Mahindra on their challans. The appellants were in belief that the activity of machining did not amount to manufacture as what item which was received was the very same item was returned without giving birth to any distinctly product, therefore, the appellants did not pay Central Excise duty. From November, 2003, they were manufacturing Clutch Release Fork for M/s Mahindra & Mahindra till March, 2008 out of their own raw materials and clearing the sai....

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....inancial year 2007-08 was less than Rs.150 lakhs. To support his submission, he produced a certificate issued by Chartered Accountant.    4. Heard the learned Counsel. 5. After hearing the learned Counsel, we find that the issue involved is in narrow compass. Therefore, after waiving the pre-deposit, we take up the appeal itself also for final disposal with the consent of both the sides. 6. Shri S.S. Katiyar, learned SDR submitted that it is admitted fact by the appellants that their activity amounts to manufacture, therefore, they are liable to pay Central Excise duty on the value of clearance effected by them during the impugned period. He further submitted that the exemption is to be claimed by the appellants b....