TaxTMI 
TaxTMI 
2019 (5) TMI 214
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....both sides and perused the records. 3. Receiving intelligence, officers of Central Excise searched the premises of the appellant at Balanagar on 25.02.2008 and subsequently their premises at Gachibowli. The search and the investigations which followed revealed that the appellant was buying Galvanized Iron Strips falling under Chapter No. 7210 49 00 which they were converting through a two stage process into corrugated ducts or hollow pipes classifiable under Chapter heading 7306. This process involved use of two machines viz., "Sintra 110 Duty Machine" and "Duct Flattening Machine". The department came to a conclusion that the appellant was manufacturing these ducts from strips and the ducts so manufactured are liable to excise duty whic....
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..... During the investigation, some goods were also seized valued at Rs. 10,61,760/- and it was proposed to confiscate the goods under Rule 25 of Central Excise Rules, 2002. 4. After following due process, the lower authority vide his Order-in- Original dated 03.02.2010 held that the activity undertaken by the appellant does not amount to manufacture and also the required machinery kept moving from place to place depending upon the requirement of the construction. Consequently, the question of payment of Central Excise duty does not arise. Holding so, he dropped all proceedings with consequential relief. 5. Aggrieved by the order of the lower authority, the Revenue appealed before the first appellate authority who, by the impugned order ....
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....similarly closed) of iron or steel - Line pipe of a kind used for oil or gas pipeline: 7306 11 00 -- Welded, of stainless steel kg. 7306 19 -- Other: --- Galvanized pipes: 7306 19 11 ---- of iron 7306 19 19 ---- Other. --- Non-galvanized pipes: 7306 19 21 ---- of iron. 7306 19 29 ---- Other - Casing and tubing of a kind used in drilling for oil or gas: 7306 21 00 -- Welded, of stainless steel 7306 29 -- Other: 7306 29 11 ---- of iron 7306 29 19 ---- Other 7306 30 - Other, welded, of circular cross-section, of iron or non-alloy steel: 7306 30 10 --- of iron 7306 30 90 ....
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....ufactured in the assessee's Plants at Balanagar and Gachibowli and transported by delivery challans as can be seen from the show cause notice and not on the goods manufactured at site. Therefore, there is no force in the argument of the appellant that the goods were manufactured at site. On the question of whether the goods were manufactured at all, learned departmental representative would submit that it can be seen what was used were GI Strips and what were manufactured were GI Ducts and both are distinct commodities as known in the market. GI Ducts are clearly marketable as can be seen from the various websites on which such ducts are being marketed. Therefore, they are liable to pay Central Excise duty on those products. On the question....
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....cause notice and therefore, the demand cannot be reduced on the ground that the appellant would have been entitled to the benefit of Cenvat Credit had they followed the necessary procedures under Cenvat Credit Rules, 2004. 9. We have considered the arguments on both sides and perused the records. The first issue to be decided is whether the appellant was manufacturing goods or not. Clearly, the inputs were GI Strips while the final products were GI Ducts of non-circular cross section. Thus, they fall under different Tariff headings, the final products being under 7306 69 00. It is also evident that a distinct marketable commodity as known in the market and as is sold in the market under a different name comes into existence. It is immate....
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....ly affects the demand. We find that although the prayer part of the appeal by the department does not cover the issue of manufacture of excisability, these issues were clearly covered in Para 12 of their appeal before the first appellate authority. Therefore, we find no force in this argument by the appellant. On the question of benefit of Cenvat Credit, we find that it is beyond the scope of show cause notice and if the appellant is entitled to the benefit of Cenvat Credit, they may take so after following due process as applicable during the relevant period. 10. On the question of extended period of limitation being invoked, we find that there is nothing on record to show that the appellant had declared their activity before the Centra....