TaxTMI 
TaxTMI 
2019 (9) TMI 1216
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....riefly stated the facts of the case are that M/s Machine Crafters, during the relevant period i.e. 2000-2001 and 2001-2002 engaged in the manufacture of slotted angles and channels falling under CSH 7308.90 of Central Excise Tariff Act, 1985 and availing SSI exemption under relevant notifications issued from time to time. On the basis of investigation carried out by the officers, it is alleged that another company viz. M/s Durable Drums who also manufactured similar goods since did not have the facility to manufacture the said goods i.e. slotted angles/channels etc, in fact, got it manufactured in the premises of M/s Machine Crafters, hence the clearance value of M/s Durable Drums required to be added to the clearance value of M/s Machine C....
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....the learned Commissioner (Appeals), after analyzing the facts and evidence on record, rejected the appeals filed by the Appellants. Hence, the present appeals. 3. At the outset, the learned Advocate Shri M.P. Baxi for the Appellants has submitted that M/s Machine Crafters, during the relevant period, engaged in the manufacture of upright beams, BR angles, Br brackets, slotted angles and shelves. They carried out certain process on the raw material procured by them or supplied by M/s Godrej & Boyce Ltd. The raw materials were required to undergo several processes viz. shearing, punching, bending, welding, and painting. For the process of shearing, the raw material was sent to M/s Daji Kika & Sons, for punching to M/s Bharat Industries, fo....
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.... that adding the value of the clearance of M/s Durable Drums in computing aggregate value of the clearance of the Appellant for ascertaining the admissibility of SSI exemption notification is incorrect and unsustainable in law. He has submitted that M/s Durable Drums is an independent manufacturer having their own existence and procure orders independently and manufacture certain products viz. channels and panels which were not manufactured by the Appellant. It is his contention that most of the processes viz. shearing, punching, and welding were neither carried out in the premises of M/s Machine Crafters nor in the premises of M/s Durable Drums as necessary machinery for carrying out these processes were not available. These processes were....
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.... is a dummy unit having no existence except on paper. In the present case, the Department has acknowledged the existence of M/s Durable Drums as an independent unit. The learned Advocate further submitted that interpretation of the learned Commissioner (Appeals) relating to the Notification No.83/94, dt.11.04.1994 is incorrect as the process of painting is incidental and ancillary to complete the process of manufacture, hence covers the scope of said notification. It is their contention that, therefore, the clearance value of the goods of M/s Durable Drums cannot be added to the clearance value of M/s Machine Crafters. 6. Per contra, the learned A.R. for the Revenue reiterates the findings of the learned Commissioner (Appeals). He has su....
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....arance of M/s Machine Crafters in computing the aggregate value of the clearances for the period 2000-2001 in extending the benefit of SSI exemption. There is no dispute of the fact that during the relevant period, M/s Machine Crafters were the manufacturer of excisable goods viz. slotted angles/brackets etc. The said finished goods emerge after carrying out the processes of shearing, punching, bending, welding and painting. It is the contention of M/s Machine Crafters that except painting and the process of bending, all other processes were carried out on job work basis from various job workers by sending the raw materials to them. Similar is the situation with M/s Durable Drums. In the premises of M/s Durable Drums, only facility for pain....