2011 (4) TMI 1453

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....7308 90 90 and 8537 10 00 of the schedule to the Central Excise Tariff Act, 1985. They purchased control panels manufactured from M/s. Power Control Equipments, Bangalore on payment of Central Excise duty and cleared the same to 100% EOU without payment of Central Excise duty and on the basis of CT3 certificate, misdeclaring that the same have been fabricated/manufactured by them and thereby have not fulfilled the condition specified in Notification No. 22/2003-C.E. Consequently, they also irregularly availed the Cenvat credit amounting to Rs. 6,72,064/- and Education Cess amounting to Rs. 13,441/- on the control panels purchased from M/s. Power Control Equipments, Bangalore and utilised the same for payment of duty on clearance of excisabl....

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....ontends that the facts are not in dispute. The assessee did not purchase the raw materials for the purpose of manufacturing control panels. On the contrary, he purchased finished control panels from M/s. Power Control Equipments, Bangalore on payment of Central Excise duty. But wrongly, he took credit of duty paid and utilised the same while making payment of duty. It cannot be said to be a bona fide mistake or error in the interpretation of the notification. At any rate, testing, inspection and packing do not constitute manufacturing as understood in the context of Central Excise Act. Therefore, he contends that the orders passed by the Appellate Authority are illegal and require to be set aside. 4. Per contra, the learned Counsel fo....