2004 (5) TMI 578

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.... Per Justice K.K. Usha : In this appeal at the instance of the assessee two issues are involved - One relating to an alleged clandestine removal of goods on which Central Excise duty would come to ₹ 30,467/- The second relates to inclusion of fright and insurance charges collected from their customers in the assessable value. 2. As far as the second issue is concerned, it is covered in fav....

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....cture. The appellants were directed by the departmental officers to once again get themselves registered under the Central Excise Rules on the premise that filing of cylinders from tankers amounted to packing/re-packing. Since the amendment came into effect overnight and the appellants were also in urgent need to dispatch the cylindersto their customers, the appellants started clearing the goods f....

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....er on substituted with new invoices. It was on the above basis allegation was made in the show cause notice of clandestine removal of the goods by the appellant. 4. The original authority as well as the appellate authority did not accept the explanation offered by the appellants. But on going through the order impugned, we find that apart from resumption of the above mentioned invoices there are ....

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.... filled in smaller containers. Identical is the nature of the activity of the appellants also. This contention of the appellants was rejected by the Commissioner by observing that since the appellants themselves had sought registration and entered into modvat stream, it cannot now turnaround and contend that the activity would not amount to manufacture. 6. The learned counsel for the appellants w....