TaxTMI 
TaxTMI 
2019 (11) TMI 1578
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....r brand name "Endurafon" and machinery falling under Chapter sub-heading 83 of Central Excise Tariff Act, 1985. Also, they are engaged in importing hard faced plates branded as "Arcofon". Alleging that even though they carried out various processes on these imported plates, which resulted to 'manufacture', but failed to discharge duty on such manufactured goods, show cause notice was issued to them on 6-8-2007 demanding duty of Rs. 70,73,413/- for the period from July, 2002 to December, 2006 along with interest and penalty. On adjudication, the demand was confirmed with interest and penalty. Hence, the present appeal. 3. At the outset, the Learned Advocate for the appellant Shri Neerav R Mainkar has submitted that the appellant impo....
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....ar plates, hence they have rightly not discharged duty on the same on its clearance/sale. In support, they have referred to the judgment in the case of CCE, Mumbai v. Akay Powerline Products (P) Ltd. - 2001 (130) E.L.T. 678 (Tri. - Del.), VIP Industries v. CCE, Nagpur - 1999 (106) E.L.T. 46 (Tri.). 4. Further, the Learned Advocate has submitted that confirmation of demand invoking extended period of limitation is bad in law Inasmuch as after visit by the officers to their factory way back in the year 2004. The Chief Plant Manager in his statement dated 28-9-2004 clearly explained the distinction between the 'imported wear plates' and the indigenous manufactured plates; also he has categorically stated that since the appellant did no....
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.... that after the process of cutting, drilling, welding etc., on the imported wear plates, it does not remain 'as such' but become machine parts and not a general 'wear plates' as argued by the appellant. In support of his contention, he has referred to Section Note 2 of Section XVI of the CETA, 1985. Further, he has submitted hat as per Section Note 6 of Section XVI of CETA, 1985, the conversion of an article which is incomplete or unfinished having essential character of the complete or finished article into complete or finished article shall amount to 'manufacture'. It is his submission that therefore, the fabricated items would correctly classifiable under respective Chapter sub-heading in which the machinery is classifiable. In support, ....
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....llant, is having a distinct size and shape different from that of imported 'wear plates'. The Customers placed orders on the appellant for the impugned goods of various shapes and sizes required, for different types of machine parts and appellant had supplied the same as per the drawing and design mentioned in the respective purchase order by individual customer for its use as parts of a particular machine. Therefore, the activity of the appellant is not just mere trading but involved converting the imported 'wear plates' into various shapes and sizes as per the requirement of the customers by subjecting into various processes, like cutting, welding, drilling etc. resulting into different commodity having distinct character, name and use. F....
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....tes cannot be considered as mere trading activity, hence rightly confirmed the duty demanded for clearance of the said goods after undertaking the process of drilling, cutting and welding etc. in their factory premises. 10. However, on the issue of applicability of extended period, we find that the Department visited the factory of the appellant way back in 2004 and undertook analysis of the process undertaken by the appellant on the imported wear plates. In response to Department's query, the appellant submitted their reasons about the durability of imported plates after undertaking the process of cutting, drilling, welding etc., in contrast to their own branded manufactured wear plates, however the Department did not take any acti....