TaxTMI 
TaxTMI 
2018 (6) TMI 242
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....chase orders from their different customers; they procure the parts and assemble the clocks; test them and clear the clocks thus made in CKD condition to the customer's installation sites and they get them installed at the customer site. It was alleged that the appellants were directly negotiating with the customers regarding the cost, erection and commissioning charges and the sale proceeds are deposited to their marketing division. It was also alleged that the verification of documents like quotations, purchase orders, invoices, gate passes, etc., confirmed that the appellants are manufacturing tower clocks falling under Central Excise Tariff Subheading No.9103 and have not discharged the applicable duty, thereof. Therefore, a show-cause ....
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....xcise duty of Rs. 66,532/- along with Education Cess of Rs. 1,331/- for the period February 2005 to January 2006. The original adjudicating authority has also ordered for recovery of interest and imposed a penalty of Rs. 5,000/- on the appellants. 2.2 The appellate authority vide Order-in-Appeal No.26/2007-CE dated 31.7.2007 has confirmed the views of the original authority. The appellants being aggrieved by the above have filed the present appeal No. E/777/2007-DB. 3. The appellants contended that the original adjudicating authority got investigation conducted into the matter after the personal hearing has taken place and they have not been informed of the findings and no opportunity to represent thereof on the findings was given to ....
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.... of tower clocks within the meaning of Section 2(f) of the Central Excise Act, 1944. The appellants also submitted that the learned Commissioner (A) has erred in holding that the tower clocks can be dismantled and moved from one place to another. The appellant's contention was that such tower clocks are fixed to the ground and cannot be removed without cannibalizing. The entire equipment is a clock of specific dimension which is assembled in conjunction with civil works and electronic connections. The visible portion of the clock is embedded in the civil structure. Removal of such clocks cannot be done without breaking the structure into which it is embedded. Such a process of removal will obviously result in damage to the frame dial, etc.,....
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....ave given a copy of such report to the appellants, so that the appellants could have defended themselves against the conclusions drawn thereof in the investigation report. We find that the learned appellate authority has also not considered the non-supply of copy of the report as no violation of principles of natural justice. We find that in the entire scheme of matters, confirmation by the original adjudicating authority is based on the said investigation report. The investigation report being very critical to the conclusions of the adjudicating authority, an opportunity should have been given to the appellants and any denial of such opportunity is a clear violation of principles of natural justice. We find that it was held by Allahabad Tr....