2013 (5) TMI 345 - AT - Central Excise

Excisability & dutiability of fabrication of Coils Goods cleared by the appellants to their Transformer Repair Division. - Held that - Three Member bench in appellants own case vide order 1994 (12) TMI 181 - CEGAT, NEW DELHI has decided the issue in appellant s favour as, it is clear that in this transformation from electrical wire into a part of transformer, there is no moment in time when the coil itself exists independently as a coil. Thus, the coil does not exist at any time as a marketable commodity. - Following this decision of the Tribunal we set aside the impugned orders and allow the appeals filed by the appellants.

Summary

Issues:
Excisability and dutiability of Coils cleared by the appellants to their Transformer Repair Division.

Analysis:
The case involves three appeals filed by the Sub Divisional Officer of Punjab State Electricity Board against an order passed by the Commissioner of Central Excise, Jallandhar. The appellants are manufacturers of LT/HT Coils used in the repair of old/damaged distribution transformers. The Department issued show cause notices demanding duty on the coils cleared by the appellants during specific periods. The Commissioner confirmed the duty, interest, and imposed penalties on the appellants based on the show cause notices. Subsequent show cause notices were also issued and adjudicated by the Commissioner. The appellants challenged these orders before the Tribunal.

The main issue in the appeals was the excisability of the fabrication of Coils. The appellants' advocate argued that previous final orders in the appellants' favor on similar facts supported their case. The advocate cited specific final orders in support of the appellants' position. On the other hand, the Revenue's representative reiterated the Commissioner's findings, stating that previous Tribunal orders were based on the first decision and that LT/HT Coils are excisable and dutiable goods once they are included in the Tariff.

After considering the arguments from both sides, the Tribunal found that the key issue in the appeals was the excisability and dutiability of the Coils cleared by the appellants to their Transformer Repair Division. The Tribunal noted that a three-member bench in the appellants' own case had previously decided the issue in favor of the appellants through an order dated 19.12.1994. The Tribunal highlighted that an appeal filed by the Revenue against this order was dismissed by the Supreme Court. Consequently, the Tribunal set aside the impugned orders and allowed the appeals filed by the appellants.

This judgment underscores the significance of previous decisions in similar cases and the impact of such precedents on the outcome of current legal disputes. The Tribunal's reliance on past rulings and the dismissal of the Revenue's appeal by the Supreme Court played a crucial role in determining the excisability and dutiability of the Coils in this case.