2007 (8) TMI 356 - HC - Central Excise

Summary

Issues:
Challenge to order passed by the Custom, Excise and Service Tax Appellate Tribunal regarding excise duty on G.I. wire and barbed wire manufacturing.

Analysis:
The appeal in this case challenges the order passed by the Custom, Excise and Service Tax Appellate Tribunal related to the excise duty on G.I. wire and barbed wire manufacturing. The appellant, a manufacturer with a factory in Kanpur, was found to have engaged in clandestine removal, leading to an excise duty liability. The Commissioner (Appeals) confirmed the order, prompting the appeal to the Tribunal. The appellant argued that a specific activity, drawing wires from wire rods, should not be considered manufacturing based on a judgment of the Apex Court. However, the Tribunal refused to address this argument, stating it was not raised earlier. The appellant requested an opportunity to present evidence on this issue.

The Court noted the appellant's request and directed that the matter be placed before the adjudicating authority for examination, allowing both parties to present their submissions and evidence. The appellant agreed to deposit the remaining amount of excise duty and provide a bank guarantee or deposit for the penalty amount. The Additional Solicitor General highlighted that the Excise Department had not previously addressed the new argument raised before the Tribunal but agreed to the Court's decision if the Department's interests were safeguarded.

Consequently, the Court set aside the lower authority's order and revived the original proceedings before the adjudicating authority to determine whether drawing wires from wire rods constituted manufacturing. This decision was subject to the appellant depositing the required amount and providing the necessary guarantee within four weeks. The deposits made were to be subject to further orders in the proceedings. The appeal was disposed of based on these conditions.