2024 (3) TMI 916

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....estion of law agitated and the assessee is also common. Therefore, we proceed to decide all the appeals together by a common order. 2. Heard Mr. Dominic Fernandes, learned Senior Standing Counsel for CBIC appearing for the appellant/Department and Mr. Narendra Dave, learned counsel representing Mr. Lakshmi Kumaran Sridharan, learned counsel for the respondent/assessee. 3. The challenge in all these appeals is to the order passed by the Customs Excise and Gold (Control) Appellate Tribunal (for short, 'the Tribunal') whereby the appeals preferred by the assessee challenging the common Order-in-Original (OIO) passed by the Commissioner of Central Excise & Customs, Hyderabad, dated 15.02.1999 has been set aside vide impugned order dated 2....

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....So also it was held that the process of varnishing also becomes necessary process to ensure insulation and without the process of pressing and varnishing these stators cannot be used by the assessee. Hence, it was held to be an activity of manufacture confirming the demand in so far as the stators are concerned. 7. The matter which travelled to the Hon'ble Supreme Court stood decided by the aforementioned judgment was for the period from May, 1992 till January, 1998. The show cause proceedings initiated in respect of the demand of duties and further in respect of penalties under Rule 9(2), 57(A) and 173Q of the Central Excise Rules finally stood decided vide common order dated 15.02.1999 by the Commissioner, Central Excise vide Order-in-....

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.... taken up and decided pursuant to the order of remand made by the Hon'ble Supreme Court on 08.09.2022. 9. If we read the first order of the Hon'ble Supreme Court, the issue stands conclusively established that so far as the stators undergoing the process of shaping, varnishing and baking at the Service Centre of the assessee would get attracted as a manufactured good within the meaning of Section 2(f) of the Act. The substantial reason why Hon'ble Supreme Court took the said view was that without the process of pressing for shaping, varnishing for insulation it cannot be used by the assessee in the course of manufacturing or repair of the compressors and therefore, the entire process of undertaking has to be held as an activity of manufa....

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....the stators before it was affixed to the compressors making it usable and therefore the other activities carried out other than shaping, varnishing and baking at the Service Center has to be taken note of enabling them to be brought within the definition of Section 2(f) under the Act. 12. However, when we look into the findings of the Commissioner, vide OIO dated 15.02.1999, the finding is predominantly so far as the stators being subject to undergo the process of shaping, varnishing and baking is concerned. The OIO does not reveal an iota of material or evidence dealing with any other activity or manufacturing process other than shaping, varnishing and baking is concerned. The OIO is also silent on the aspect whether beyond 01.05.1992 t....

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....g rejected on flimsy grounds, the issue of non-reconciliation cannot be now raised. We fail to understand this. From the statement now produced by the appellant and the Show Cause notices, it is apparent that the demands have been made, based on letters and details supplied by the appellants as regards the total quantity of stators used, in the Service Centre, the total number of stators received from outside parties (job workers), as against the total compressors repaired in different series during different periods of time. The plea of the SDR to raise and confirm demands on such stators which might have been rewound in the Service Centre cannot be upheld, since it is the case of the appellant that they shifted the entire operations to jo....

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....of the process undertaken at the assessee's Service Centre in respect of the so-called retrieving old stators from old compressors received by the assessee and mere using of old stators and subjecting the old stators to some process and renewing the same would not be sufficient. Moreover, all these allegations and contentions raised by the learned Senior Standing Counsel for CBIC would amount to be factual in nature. Therefore, in the course of exercising the powers under Section 35G of the Act, this Court cannot interfere with the finding of facts unless there is any strong substantial question of law or perversity made out. On this very ground, we do not find any merits in the appeals preferred by the appellant. 15. In the teeth of the....