2009 (7) TMI 1137 - AT - Central Excise

Summary

Issues involved: Application for waiver of pre-deposit of duty of Rs. 48,52,976/- along with interest and penalty arising from the manufacture of APS units, Props, Spans, and floor forms falling under CET sub-heading 7308 40 00 as equipment for scaffolding for the period 2004-05 to 2006-07.

Manufacture of APS units: The welding activity of verticals and horizontals with socket pipe/clamp does not amount to manufacture, hence no duty demand is justified.

Manufacture of Spans: Cutting and bending of sheets into 'C' sections do not transform the sheets into a new excisable commodity, therefore no excise duty liability arises.

Manufacture of Floor Forms: Cutting and knotching of HR sheets to create floor forms do not result in a new excisable commodity, hence no duty liability is established.

Manufacture of Props: Threading, drilling, and fixing of metal plates on pipes to create props for supporting RCC beams constitutes manufacture, resulting in a new excisable commodity falling under the heading adopted by the Commissioner. However, the value of props being approximately Rs. 5 lakhs, the applicants are eligible for the benefit of SSI exemption.

Conclusion: A prima facie case has been established by the applicants for total waiver of pre-deposit of duty, interest, and penalty, leading to the stay of recovery.