TaxTMI 
TaxTMI 
TaxTMI 
2014 (9) TMI 741
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.... and supplying coated MS Pipes to various water supply projects. The Appellants are also availing exemption under Sl. No. 7 of the Notification No. 6/2006-CE on obtaining a certificate from District Magistrate. Details of some of the projects where the Appellants are availing/availed exemption under the above notification are as follows: Client Description Exemption availed Karnataka Urban Water Supply & Drainage Board, Mysore Supply of MS Pipes of various diameter for providing drinking water supply to Mysore City from Kabini River Under Sl. No. 7 of the Notification NO.6/2006-CE dated 1.3.2006 as amended. Gujarat Water Supply Sewerage Board, BK4, Palanpur Supply of MS Pipes of various diameter for Regional Water Supply Scheme Under Sl. No. 7 of the Notification No.6.2006-CE dated 1.3.2006 as amended 2.1 Nagpur Municipal Corporation, Pench Project Cell awarded work of conveyance of raw water from Pench Dam to Mahadula through MS Pipelines under Nagpur City Water Augmentation Scheme Pench-IV to M/s. China Railway Shisigu Group Corporation Ltd. (CRSGC) in Joint Venture with M/s. SEW Infrastructure Ltd.,under Work Order bearing No. NMC/PPC/EE(PPC)/JN/07/2008....
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....s manufactured and cleared to Nagpur Municipal Corporation are exempt from payment of Excise Duty under Sl. No. 7 of the Notification 6/2006-CE dated 1.3.2006, the Appellants did not take registration as they were manufacturing only the exempted goods. Accordingly the Appellants manufactured and cleared 622 Nos. MS Pipes from 23.03.2009 to 12.11.2009 to the above said project without payment of duty on the bona fide belief that the pipe supplied to the above said project are exempted from payment of Excise Duty. The Appellants entertained this belief as the Appellants are supplying MS Pipes to various water supply projects across India and availing the benefit of Sl. No. 7 of the Notification No.6/2006-CE dated 1.3.2006 as amended. 2.4 The Appellants obtained a certificate dated 10.06.2006 from the District Magistrate certifying that 27,360 R.Mtrs., of MS Pipes of 2300 mm outer dia, 12mm thick with inside and outside coating and 60 R.Mtrs. of MS pipes of 2032 mm, outer dia 20mm thickness ordered on CRSGC/SEW JV by the Executive Engineer Pench Project Cell, Nagpur Municipal Corporation vide Work Order No. NMC/PPC/EE(PPC)/07/2008, dated 24.09.2008 are required to be cleared to Nagpu....
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....that just prior to guniting, wire mesh is enveloped over the pipes; that the manufactured pipes are kept for curing for one week and thereafter they clear the said pipes to the site of laying or stack yard of CRSGC-SEW JV; that till November, 2008 the Appellants had manufactured 2002 nos. of pipes and out of these 622 pipes have been dispatched to the site or the stack yard of CRSGC-SEW JV and as on that dated 1380 nos. of pipes are within the factory premises itself; that as per the agreement entered into with M/s. SEW Infrastructure Limited they are acting as a Job Worker and on the directions of SEW they had not obtained central excise registration as they were under the belief that the principal contractor would obtain the central excise registration and therefore they had not discharged any central excise duty on the pipes which are cleared from their factory premises; that they are charging job work charges of Rs. 3150/- per MT for fabrication and Rs. 270/- per Sq.Mt of gunniting. 2.6 In the above background, the Appellants had been issued with Show Cause Notice dated 11.05.2010 proposing to demand central excise duty of Rs. 2,21,81,137/- for the period from March 2009 to Oc....
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....isigu Group Corporation Ltd. (CRSGC) in Joint Venture with M/s SEW Infrastructure Ltd. The premises required for set up of the manufacturing facility as provided by the said Joint Venture. The principal raw materials being MS sheets are also provided by the said Joint Venture. The appellants undertake manufacturing activity with their machinery, labour, consumables etc. and guniting the same and the clearance of the pipes from the manufacturing site to the site, where the pipes are required was undertaken by the said Joint Venture. Therefore, for a practical purpose, the appellants are only acting as job-worker and duty liability, if any, is only on the principal manufacturer (Joint Venture) and not on the appellants. Thus, the decisions relied on by the Commissioner in the impugned order are misplaced. The Commissioner has further erred that as the appellants have not got themselves registered with the Sales Tax/Excise authorities in spite of stipulation in the work order, the plea of the appellant was found to be frivolous that they had not get themselves registered as it was not chargeable to tax under the respective Acts. 3.1 Further, the appellant states that they were under ....
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....ant, it is crystal clear that the appellant is a job-worker only. In the said work order, it is also mentioned that even in the scrap generated shall belong to the said Joint Venture. The appellant also draws attention of the Tribunal towards certificate dated 10.6.2009 issued by the District Magistrate, Nagpur District and the same is also countersigned by the Executive Engineer, Pench Project Cell, NMC Nagpur and the Municipal Commissioner, Nagpur Municipal Corporation, Nagpur which certified that MS Pipes 2300mm outer Dia 12mm thick with inside and outside coating specifying unit and quantity and also MS Pipes 2032mm outer Dia 20mm thickness ordered to M/s CRSGC-SEW (JV) by the Executive Engineer, Pench Project Cell, Nagpur Municipal Corporation vide Work Order No. NMC/PPC/EE(PPC)/07/2008 dated 24.9.2008 required to be cleared to NMC for water supply scheme Pench IV Project, Dist. Nagpur are for the intended use as specified in column No.3, Sl. No. 7(2) of the Notification No. 6/2006 dated 1.3.2006 as amended. The said pipes are of outer diameter exceeding 20 cms and integral part of the aforesaid Water Supply project. 3.5 It is further stated that the said certificate is being....