2018 (2) TMI 1559

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....f Wire Mesh and Perforated Sheets. They were also engaged in the business and trading of perforated sheets and wire netting. They were not registered with the Central Excise Department. After enquiry, the Department came to the conclusion that the activity of perforation of flat rolled steel sheets procured from the open market would amount to manufacture in terms of Section 2(f) of the Central Excise Act, 1944. Accordingly, after issue of show cause notice dated 31.03.2014, demand of Central Excise duty was confirmed, invoking the extended period of limitation. Accordingly, Rs. 28,11,025/- was demanded from the appellant alongwith interest and penalty of equal amount. The appellant did not get relief from at the level of Commissioner (Appe....

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....Central Excise duty. After referring to the Chapter note 1(k) to Chapter 72 of Central Excise Act, we note that the flat rolled products include both those with and without perforation. However, the Hon'ble Allahabad High Court has expressed the clear opinion that after perforation, the iron sheet emerges as a different commercial commodity. The observation of the Hon'ble Allahabad High Court reads as under: "6. In my opinion, after perforation, the iron sheet emerges as a different commercial commodity. A perforated iron sheet cannot be used for purposes in which a plain iron sheet can be used. In other words, the use of an iron sheet and perforated iron sheet is not interchangeable. It may also be noted that a perforated iron she....