AI Drafter 
TaxTMI 
TaxTMI 
2018 (7) TMI 846
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....khs under rule 209A of Central Excise Rules, 2002 read with Section 38A of the Central Excise Act, 1944 has been imposed. 2. The facts of the case are that the appellant are purchasing stator stampings from the market in loose form. The said stampings are received by them duly tied by a thin metal wire for easy handling and the same are purchased by them on kilogram basis. The said stator stampings are sold by the appellant after cleatting or riveting them. The said cleatted or riveted stator stampings are sold by them for further use of manufacturing of electric motor. The issue in dispute is if the said cleatted or riveted stacks stampings are classifiable as part of stator falling under Heading 8503.00 of the First Schedule of the ....
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....en from the invoices. He pointed out that earlier they had challenged the order of Tribunal before Hon'ble High Court of Bombay and vide order dated 7.4.2006, the order of Tribunal was set aside and the matter was remanded back to CESTAT. In the remand order passed by the Tribunal dated 22.1.2007, the matter was remanded back to the original adjudicating authority. 3.2 Learned Counsel argued that the mere process of cleatting or riveting of stator stampings would not amount to manufacture. He argued that while the matter was remanded by the Tribunal to the adjudicating authority to decide on the issue of manufacture, the impugned order has not done the same. 3.3 He further argued that the process of cleatting or riveting of stampi....
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....stantiate their claim that the said stack of cleatting or riveting stamps is not stator. They have relied on the followings: - (i) Opinion of Shri A.V. Bapat, Chartered Engineer, M. Tech and M.I.E., of Sanchit Consultants; (ii) Opinion of Veer Mata Jijabai Technological Institute (VJTI) Mumbai; (iii) Certificate issued by GOVT COLLEGE OF ENGINEERING (Testing and consulting service), Pune (iv) Opinion of Navinchandra R. Bheda of Mumbai who is an expert designer of motor and consultant. 3.4 He argued that since riveting or cleatting does not result in coming into existence of stator, therefore, the process does not amount to manufacture. He argued that Commissioner ignored this evidence and held the goods to be stator. He argue....
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....ing warning. The Revenue has relied on the copy of original invoice no. 5858 dated 15.1.1999 where the word "loose" was not written on the invoices. He admitted that the appellants at the time of issuing the invoices the word "loose" was not written. The word "loose" was mentioned later to segregate the goods covered by such invoices. In order to segregate the invoices, copy of invoices were marked with "loose" or "loose form". He argued that it was not claimed by them that at the time of clearance the word "loose" was put on those invoices. 3.7 He further argued that demand is barred by limitation since the appellants were under bona fide belief that the activities undertaken by them does not amount to manufacture. He further argued tha....
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.... sand paper. b) Enamelled copper wire is prepared in coil form by bunching together the insulated wire. c) Insulation in the form of insulating paper or polyester film is inserted in the slots in the Stator stack to prevent contact between enamelled copper wires and the stamping. d) Enamelled copper wire in the form of coil is inserted in the insulated slots and connected together by brazing. e) To remain the upper and down ends of coils stationery they are dipped in insulating varnish so as to get varnish cover. f) The end connections are brazed to the insulated lead wires." 5.2 The first stage of the process of manufacture is a cleatting/riveting of the requisite number of stampings. Thus, the cleatting/riveting of the s....
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.... basic dispute of manufacture, which was required to be dealt with by the adjudicating authority. However, we find that instead of dealing with the said prime issue, the adjudicating authority, by referring to Section Notes and interpretative rules arrived at the finding of classification of the said product. As such, without expressing any opinion on the merits of the said issue, we set aside the impugned order and remand the matter to Commissioner for decision on the said issue. We make it clear that all other issues raised by the appellant, as regards the quantification of duty, limitation etc. are kept open for decision. The appeal is allowed in above terms. " 5.3 We find that the impugned order deals with the classification of the p....