2014 (9) TMI 1225 - HC - Central Excise

Process amounting to manufacture or not - credit of additional duty of customs, education cess, secondary and higher education cess and special additional duty of customs paid on the imported Polyurethane Resin - HELD THAT - The Registrar (Judicial) / Registrar, High Court, Original Side, Bombay to ensure that the original record in relation to this Appeal is summoned from the Tribunal and offered for inspection of the parties. This paper book is treated sufficient for the purpose of admission of this Appeal. However, the Registry must further ensure preparation of complete paper book in accordance with the Rules. The Registry in the first instance must send intimation of admission of this Appeal enclosing therewith a copy of this order so as to enable the Tribunal to act accordingly.

Summary

Issues involved:
1. Whether the activity of the appellant amounts to manufacture.
2. Whether the appellant was entitled to credit of additional duty of customs, education cess, secondary and higher education cess, and special additional duty of customs paid on imported Polyurethane Resin for payment of CENVAT duty on the resultant product cleared by the appellant.

Analysis:
1. The High Court of Bombay, comprising S.C. Dharmadhikari and A.K. Menon, JJ., admitted the appeal after hearing arguments from both parties represented by Mr. Prakash Shah with Mr. Jas Sanghavi for the Appellant and Mr. Pradeep S. Jetly with Mr. J.B. Mishra for the Respondent. The court found merit in the appeal based on the substantial questions of law raised. The first issue pertained to whether the Appellate Tribunal correctly determined that the appellant's activity did not constitute manufacturing. This question was crucial to the case and formed the basis of the appeal.

2. The second issue revolved around whether the appellant had the right to claim credit for various duties paid on imported Polyurethane Resin when clearing the resultant product. The court highlighted the importance of this issue in the context of the case's facts and circumstances. The appellant's entitlement to credit for additional duty of customs, education cess, secondary and higher education cess, and special additional duty of customs on the imported material was a significant aspect of the appeal.

3. The Respondent waived service, streamlining the procedural aspects of the case. The court directed the Registrar to summon the original record from the Tribunal for inspection by the parties. While deeming the current paper book sufficient for admission purposes, the court instructed the Registry to prepare a complete paper book in compliance with the rules. The Registrar was also tasked with notifying the Tribunal of the appeal's admission and providing a copy of the order for necessary action. This procedural direction ensured transparency and adherence to legal protocols in the appeal process.