2017 (4) TMI 1124

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ng is used by the textile mills in the carding process for removing foreign particles like cotton and wool for improving quality of the fibre. The appellants also have their sales depot at Madurai and Coimbatore where workshop is available. They are undertaking servicing activities like repair and maintenance etc. relating to card clothing. The contention of the department is that these services prima facie appear to be aiding/ smoothening in installation/ sale of the finished goods that they were issuing separate demands for recovering the cost of these services from their customer, which they failed to include in assessable value of the products. Show-cause notices were issued to the appellants seeking to recover central excise duty on th....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....er manufacturer and the customer after use thereof the old card clothing are sent to the depot where the repairing activities are carried out. He submits that as regards the goods manufactured and supplied even though through the same depot the goods are fully manufactured in the factory itself therefore, on newly manufactured card clothing no further activities are carried out at the depot. He also submits that as regards the service activity of repair of old card clothing the appellant have registered themselves as service provider and discharged the service charge on the depot. Therefore the repairing activity of old card clothing is an independent activity, which is not related to the manufacture and sale of newly manufactured goods cle....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....lant on the newly manufactured goods cleared from the factory to the depot and from there to the customer. It is the submission of the appellant that as regards the newly manufactured card clothing, it is fully manufactured at the factory even though some small quantity is transferred to depot that is only for onward sale as such and on such goods no activity of repair is carried out. The repairing is carried out on the old card clothing where after use by the customer the card clothing got damaged and the same is repaired for which a separate service charge is collected by the appellant. Since the repairing activity is carried out on the old card clothing which also includes the goods initially supplied by some other manufacturer, therefor....