TaxTMI 
TaxTMI 
2008 (7) TMI 203
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....lty of Rs. 2,50,000/- by the same order. 2. Heard both sides. ld DR also filed a written submission reiterating the findings of the Commissioner on the demands relating to hydrogen trolleys and helium quads. He also reiterated the plea for retaining the penalty of Rs. 2.5 lakh imposed on Shri P.K. Gupta. 3. The relevant facts, in brief, are as follows:- (a) The appellant-company is engaged in the manufacture of hydrogen storage tanks, transport tanks, HP/LP Vaporisers, pressure building coils, helium quads, hydrogen trolleys etc. The appellant-company also gets some of these goods manufactured by various job workers. Some of the job workers do not pay duty as they are availing exemption applicable to the small scale units. (b) The heliu....
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....e ordered confiscation of plant and machinery and allowed redemption of the same on payment of fine of Rs. 5,00,000/-. He also imposed penalty of Rs. 2,50,000/- on Shri P.K. Gupta, Vice-President. (f) The duty demanded included the following amounts. Sl No. Description Period Demand confirmed 1. Denial of Modvat credit on 15 tanks diverted 8,93,018/- 2. Raw materials and components cleared as such 4/96 to 6/2000 3,79,252/- 3. 7 LP/HP vaporizer cleared under non-returnable gate passes 7/96 to 10/98 1,36,500/- 4. 26 Pressure Building coils cleared with tanks 3/94 to 3/01 1,97,000/- 5. Clearance of gas filling spares (manifold, pig tails) 2/97 to 6/2000 94,185/- &....
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....was held that they have manufactured such hydrogen trolleys, the same should be considered as special purpose motor vehicle and eligible for exemption. 5.1 Learned DR submits that the party has not produced enough evidence to prove that the frames and trolleys completed in all respects were received from the job workers and no further activities was undertaken by the appellant. The manifold and pigtail connections were fabricated at the appellant's premises and fitted to the structures received from the job worker; final assembly, inspection and approval was given at the appellant's premises. Therefore, these quad and trolleys were manufactured only at the appellant premises. 5.2 He submitted that they are liable to be charged duty under ....
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.... in which the goods were sent back by them to the appellant has been relied upon. No reliable evidence from the appellant's end has been relied upon to show that the manufacturing activities have taken place in the premises of the appellant-company. The Commissioner has inferred, merely based on presumption, that the quad like structure has been developed into equipment or appliances having individual function by the appellant and merit classification under Heading 8479. 6.3 The appellant-company claims that they gave truck chassis, angles, channels, cylinders (both new and old) etc. and gave the work order for getting the helium quad and hydrogen trolleys manufactured by the job workers. They also produced some work orders in support of t....
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....epartment. They were not able to produce any evidence that the consignment of which duty was paid in February 1997 relates to the same consignment cleared in later months. This claim of the appellant is, on the face of it, not acceptable. Therefore, the demand of Rs. 1,36,500/- deserves to be confirmed. Regarding a demand of Rs. 1,97,000/-, the Department holds that it relates to clearance of 26 pressure building coils separately whereas the appellant claims that they were included in the value of 26 tanks already cleared. The Department relies on appellant's own documents to hold that pressure building coils were given separately and they had separate prices. The appellant is not able to refute this with any acceptable evidence. Therefore,....