2023 (12) TMI 368 - AT - Central Excise

Activity amounting to manufacture or not - activity of galvanizing for goods falling under Chapter 72 of CETA - HELD THAT - It is found that the activity of galvanizing of the items falling under chapter 72 amounts to manufacture was introduced w.e.f. 08.04.2011 through Chapter (V) of the Finance Act, 2011. As during the impugned period, galvanization of the items falling under chapter 72 of the CETA did not amount to manufacture, in that circumstances, the appellant is not liable to pay duty on galvanizing activity of the goods falling under chapter 72 of the Tariff Act during the impugned period. The demand of excise duty is not sustainable against the appellant - the impugned order set aside - appeal allowed.

Summary

Issues involved: Appeal against demand of Central Excise duty on the presumption that Service Tax activity amounts to manufacture.

Summary:
The appellant was engaged in various activities including acquiring inputs and manufacturing structural items, job-work of galvanizing goods, and erection, commissioning, and installation of towers. An investigation revealed that galvanizing by the appellant was considered as manufacturing, leading to a demand for duty payment. The appellant contested the demand, arguing that galvanizing goods falling under chapter 72 did not amount to manufacture during the relevant period. The Tribunal examined the records and activities, concluding that galvanizing items under chapter 72 did not constitute manufacture during the period in question. Therefore, the demand for excise duty was deemed unsustainable, and the impugned order was set aside, allowing the appeal with any consequential relief.