2018 (11) TMI 730

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....na Vidyut Prasran Nigam Ltd. engaged in the manufacture of galvanised steel parts of transmission towers. During the course of investigation, it was found that the appellant was engaged in the activity of galvanization, which amounted to manufacture. Therefore, the appellant was liable to pay duty on the activity of galvanization. Accordingly, a show cause notice was issued to the appellant to demand duty on the ground that the appellant did not pay duty on the activity of galvanization for the period February, 2005 to April, 2007 and for the period May, 2007 to January, 2010 on the ground that the appellant was sending their product to the job work for the purpose of galvanization and the appellant had undertaken the recourse of Notificati....

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....unted to manufacture, therefore, the appellant is liable to pay duty. Further, the appellant has deliberately availed the Notification No.214/86-CE by undertaking payment of duty on the galvanization activity undertaken by the job worker, in that circumstance, the appellant is required to pay duty. 5. Heard and considered the submissions. 6. On careful consideration of the submissions made by both sides, we find the appellant is contesting the demands on two grounds:- (i) The appellant was under the bonafide belief for the period upto April, 2007 that the activity of galvanization does not amount to manufacture, therefore, the demand for the impugned period is barred by limitation. (ii) Post April, 2007, the activity of galvaniz....