2019 (7) TMI 484

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....ifinished AC pressure pipes, which they have cleared on payment of duty. 2. The brief facts are that the appellant is registered with Central Excise Department for manufacture of AC pressure pipes and couplers. Notification No. 5/2006-CE dated 1st March 2006, provides for exemption of duty from more than the rates specified in the table to the notification. Further at serial No. 9 of the said table provides for goods falling under Chapter 68-goods in which not less than 25% by weight of fly ash or phosphate gypsum or both have been used. In such case the rate prescribed the table is 8% subject to the condition No. 3, which provides - the manufacturer shall maintain proper account in such form and in such manner as the Commissioner of Cen....

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....rised Signatory Mr. Kishanlal Yadav was recorded who stated that the finishing process (cutting, turning, simpering and testing) are being undertaken on the semifinished AC pipes procured by them through the suppliers. Further statement of the supplier company, namely, M/s Ganpati Asbestos Cement Private Ltd and M/s MRK Pipes Ltd was recorded through their Authorised Signatory who stated that they have facility of manufacturing and finishing of AC pipes in their factory and they have been supplying the fully finished pipes to each other so as to enable them to complete the supply obligation in time. Further comparison of purchase invoice with the sales invoices issued by the appellant revealed that they have cleared the ACC pipes as such on....

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....ggrieved the appellant is before this Tribunal. The learned counsel urges that the situation is wholly revenue neutral as they have taken the credit at the same rate on inputs so received being finished/semifinished pressure pipes and have cleared the same at the same rate of output tax. Secondly, in the statement recorded of the authorised signatory of the appellant, it has been stated categorically that after receiving the AC pressure pipes from other manufacturers they are undertaking the process of cutting, turning, simpering and testing, which amount to manufacture, as per the definition of manufacture in section 2(f) of the Central Excise Act. Even for arguments sake in some cases where they have received finished AC pressure pipes an....