TaxTMI 
TaxTMI 
2025 (6) TMI 1260
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....not make any payment of central excise duty on clearance of wire rope hangers with accessories; an Audit Memo dated 27.08.2015 was issued to the appellant asking for certain documents and advising the appellant to deposit excise duty on clearances made during the period 2011-12 and 2012-13; the appellant did not deposit the duty; Audit forwarded the information to Anti Evasion Branch, who visited the premises of the appellant on 16.09.2015 and searched the premises of the appellant and resumed certain records / documents. The anti- Evasion Officers entertained an opinion that the appellant was manufacturing wire rope hangers in their premises with the help of machines and that the appellant neither got registered nor maintained the statutory records nor paid appropriate excise duty, after crossing exemption limit during the period 01.04.2011 to 30.04.2013; the appellant deposited an amount of Rs.20,00,000/- on 17.09.2015 during the investigation; towards payment of excise duty liability. 2.1. On completing the investigation, a Show Cause Notice dated 07.10.2016, seeking to confirm demand excise duty of Rs.62,45,922, alongwith interest and penalty, covering the period April,2011 to....
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....tment in April, 2013 and started paying excise duty which was not payable at all; the appellant, vide letter dated 01.01.2016, conveyed that as the matter is pending with the Audit / Anti Evasion, that they decided to pay excise duty under protest till the issue gets resolved. 5. Learned Counsel for the appellants submits further that the activity undertaken by the appellant does not amount to manufacture and hence no excise duty is applicable; a new and different article must emerge having a distinctive name, character or use. He relies on Hon'ble Supreme Court's decision in the case of Delhi Cloth & General Mills Co. Ltd. 1977 (1) ELT J-199 (SC) and submits that the word "manufacture" is generally understood to mean as "bringing into existence a new substance" and does not mean merely "to produce some change in a substance; The same was followed in South Bihar Sugar Mills Ltd1978 (2) ELT J336 (SC); It was held in the case of Moti Laminates Pvt. Ltd1 995 (76) ELT 241 (SC) that held that though duty of excise is on the manufacture or production of goods, but the entire concept of bringing new commodity is linked with marketability; an article does not become goods in the common pa....
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....thout prejudice to merit, that the appellant submits that excise duty demand of Rs. 55,46,536/-for the period 01.04.2011 to 30.04.2013 relating to 1stSCN dated 07.10.2016 is time barred and the same is not sustainable on limitation, He submits that it was alleged in the SCN that the appellant had manufactured and cleared excisable goods clandestinely and have not taken central excise registration with intent to evade payment of central excise duty; obtaining central excise registration after April,2013 strengthens their awareness and wilful involvement in violation of law and therefore, provisions of section 11A(4) are invocable. He relies on following cases and submits that as the case is made out on the basis of an Audit Objection and as no ingredients required to allege collusion suppression etc are existing and as the appellant has reasons to entertain a bona fide opinion extended period can not be invoked. * Pushpam Pharmaceuticals Company 1995 (78) ELT 401 (SC). * Anand Nishikawa Co. Ltd2005 (188) ELT 149(SC) * Easland Combines, Coimbatore 2003-VIL-13-SC-CE, * Uniworth Textiles Ltd2013(288) ELT161(SC) * Continental Foundation Joint Venture 2007 (216) ELT 177 (SC....
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....ts having regard to the context in which the term is used in the provision under consideration, but some broad parameters laid down in the earlier decisions dealing with the question could be applied to determine the question whether a particular process carried on in relation to the final product amounts to manufacture of that product. He submits that the processed undertaken and emergence of the new product with new name & description, use and character satisfies all parameters for manufacturability and leviability of C Ex duty, 10. Learned Authorised Representative submits that it was the appellant's contention that gross amount received from the buyer of the goods should be considered as Cum-duty-Price; therefore, it means that there is acceptance of duty payable; the benefit of cum duty price extended to the appellant in the OIO and duty demand reduced to Rs 55,46,536 from the original demand of Rs 62,32,089. He submits that the appellant took registration on 11.04.2013; they never declared the past clearances; it is logical to assume that the unit had no clearances prior to the day. They had never declared or disclosed their clearances prior to the date of registration; thus....
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....arious articles such as galvanized wire, stud, eye bolts, fasteners, corner saddles, locks etc, which are sold as a composite item viz. "the Hanger", different from its components; it's a new product emerging with a new name, new commodity with a different characteristics and use; the hanger sold by the appellants comes into existence after a detailed process on different machines; the galvanized wire and hanger made by the appellant are not the same goods; galvanized wire is cut, fused and crimped alongwith accessories like eye bolts, studs, fasteners, locks etc and is cleared as single item viz. the hanger; the appellant issues only a single invoice for all these items wherein the price for all these items is charged as the "Hanger of a particular specification". 13. The appellants relied on certain cases laws as discussed above. We find that the gist of judicial pronouncements on the issue of manufacture is that * Manufacture means bringing into existence a new product and not simply to produce some change. * Processing is not equal to manufacture of an article; a new and different article must emerge having a distinctive name, character or use. * The new product that eme....
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....or at least a part of the hanger system. If the impugned product remained a wire, the appellants could have very well described the same as wire with stud for hanger systems. However, the appellants having describe the same as hanger systems, have negated their own arguments. 16. Therefore, we are in agreement with the finding of the lower authority that the appellant was manufacturing a new commodity a commodity different from its raw material and components; it is known in the market by a separate name "Gripple Hanger System"; the functions and use of Gripple Hanger System is different from the raw material used; the new commodity "Gripple Hanger System" is clearly marketable and is sold at higher value than the individual components put together; the commodity does not remain just steel wire rope with stud, it becomes a totally new commodity; manufacturing activity take place and a new product with new usage and marketability comes into existence. the galvanized wire and hanger made by the appellant are not the same goods; galvanized wire is cut, fused and crimped alongwith accessories like eye bolts, studs, fasteners, locks etc and is cleared as single item viz. the hanger; th....