2015 (12) TMI 1392

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ate For the Respondent : Shri M.S.Negi, DR Per: RAKESH KUMAR ORDER The appellant are engaged in the manufacture and supply of railway signaling equipment to Indian Railways for its various stations. For this purpose, on the contracts being awarded to the appellant, the appellant prepared station specific designs of signaling system and after approval of design by the Railway procured the vario....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....gnaling system. It is on this basis that after the issue of show cause notice, the Commissioner of Central Excise vide Order-in-Original dated 22.5.2014, confirmed the duty demand of Rs. 47,42,145/- against this the appellant alongwith interest on it under section 11AB and besides this, imposed equal amount of penalty under section 11AC and also penalty of Rs. 5,000/- under Rule 27 of Central Exci....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Bangalore, Ahmedabad and Mysore where the proceedings had been dropped by the Additional Commissioner holding that the activity of the appellant does not amount to manufacture, and no excisable goods emerge, that when the appellant are paying service tax on the amount received by them, the same activity cannot be treated as manufacture, that since this is a question of interpretation and also sim....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e submissions made from both sides and perused the records. 6. The point of dispute in this case, whether the activity of the appellant installation of signaling system at site is manufacture of excisable goods and would be attract excise duty, is a question of interpretation. Prima face, we are of the view that by this activity of the appellant no excisable goods come into existence. Moreover, i....