2016 (1) TMI 201

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....ng No.84389000 of CETA, 1985. They were not registered with the Central Excise department and were availing benefit of SSI exemption under Notification No.8/2003-CE dated 1.03.2003. On intelligence received that the appellants were wrongly availing SSI benefit, a search was conducted in the manufacturing premises of the appellant, on 1.6.2004 in the presence of independent witness. The officers verified the stock of finished goods, semi finished goods and raw material and also conducted scrutiny of records. It was observed that appellants had cleared goods valued Rs. 1,71,03,560/- in 2002-03 and goods valued Rs. 1,42,76,801/-during the year 2003-04 and had crossed the limit for availing the benefit of the SSI exemption. A show cause notice ....

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....re of this complete plant, the appellants for convenience of transportation dismantled the same after testing and then erected/installed in the premises of the customer. That the bought out items supplied being integral part of the tanks, the value is includible in the transaction value charged by the appellant. It is submitted by the learned counsel that appellants do not manufacture complete brewing plant but only parts of the plant i.e. storage tanks. These tanks are manufactured as per specifications provided in the purchase orders. The tanks are special tanks fitted with various appendages like agitators, having channel base of SS legs and specific design to enable it to be connected to huge network pipelines and other parts of brewery....

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....terated the findings of the impugned order. He submitted that the Commissioner (Appeals) has observed that appellants were clearing goods on parallel invoices and has suppressed facts. On taking into account the value of the goods cleared through these parallel invoices of bought out items, the value of clearances would cross the limit of SSI exemption and the appellants are therefore liable to pay the excise duty. The bought out items are supplied by the appellants and are essential part of the machinery/tanks and therefore the cost of such items is to be loaded in the price of manufactured goods. 4. We have heard the rival submissions and perused the records carefully. 5. At the outset it needs to be stated that even though a search....

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....ese invoices we have to say that this explanation is satisfactory. Further, merely because the invoices issued did not follow their sequential number it is not sufficient to hold that these are parallel invoices. The figures in these invoices tally with accounts. Further the department has investigated with the transporters M/s. Doors Transport Ltd. No discrepancy was detected. The allegation that appellant suppressed facts by issuing parallel invoices is factually wrong. 7. The main issue that arises for consideration is whether the bought out items supplied by appellants are essential parts of manufactured goods and whether the value of such items is includible in the transaction value of the finished goods. 8. The gist of allegatio....