2001 (4) TMI 150

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....der per : C.N.B. Nair, Member (T)]. - The duty demand in the present appeal consists of two parts. Demand of about Rs. 35 lakhs is in respect of certain goods bought by the appellants from the market and supplied to the project. Remaining demand of about Rs. 12 lakhs is in respect of notional interest on advances. 2. When the matter was taken up for arguments today, learned Representative of th....

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.... Those goods were not even brought to the appellants factory. learned Counsel for the appellant submitted that there could be no duty demand in respect of the items procured from the market and supplied directly by the appellants to the Plant Power, inasmuch as they had not undertaken any manufacturing activity in respect of those bought out items. Nor had they used the bought out goods in the man....

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....se remain covered in favour of the appellant vide Tribunal's Final Order No. 932-949/2000-A in Appeal Nos. E/578-595/2000-A in appellants own case. 3. As against the aforesaid submission on behalf of the appellants learned Departmental Representative submitted that the demand in the present case is justified inasmuch as the bought out items constituted identifiable parts of electricity generato....

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....d any manufactured goods to their buyer at a reduced price, in consideration of advance payment. In fact, all the supplies in the present case were in terms of a contract for about Rs. 28 crores. Out of the above, only part of the goods were manufactured by the appellant. Terms of payment had stipulated percentages of payment due at various stages of the contract. In these circumstances allegation....