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TMI Blog1990 (1) TMI 190X X X X Extracts X X X X X X X X Extracts X X X X ..... licant is that these are not goods because they come into existence only when they are incorporated into factory s structure. Iron and steel products are supplied by them to one M/s. Mechel Engineers Works, Indore for manufacture of said steel structures and for erection of the same in the vacant land i.e. the project area of the factory. They had also been supplying electrodes, gases for welding to the said engineering works free of cost who in turn fabricate the steel structures within the factory. It is also seen from the impugned order that as per the statement of Shri R.K. Patwa, Proprietor of M/s. Mechel Engineering Works, whole work of fabrication and erection was to be done as per the noticee s instruction only and that he had emplo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cture as given in Section 2(f) of the Central Excises and Salt Act, 1944 has taken place. Therefore, there is no reason whatsoever that the judgments which were applicable to Tariff Item 68 so far as the structural are concerned, should not be made applicable to the new Tariff so long as there is no specific mention of structurals in the Tariff itself for the purpose ofexcisability. He also gave a list of large number of decisions which held that the raw materials supplier is not a manufacturer. The actual manufacturer is one, according to the learned Advocate, who actually manufactures/fabricates the goods. The demand on the applicant is therefore totally unwarranted and it should have been directed if at all against M/s. Mechel Engineers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i.) and of M/s. Steel Authority of India -1988 (36) E.L.T. 316. 6. We are of the opinion that erection or construction on site does not amount to manufacture of goods even if it involves fabrication of some material and creation of structural shapes or structures. 7. In the instant case all that has happened is that some sheds have been constructed or erected. And for this purpose various items of iron and steel have been used and different structurals have been fabricated on the spot. 8. The process is akin to constructing a house from bricks, stones and other material including articles of woods, glass or steel. No one says or was likely to say that a house was thus manufactured from bricks or articles of iron and steel, glass or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... osing penalty. 9. The learned DR has heavily relied upon the order of the Tribunal in the case of M/s Richardson Cruddas reported in 1988 (19) ECR-80 = 1988 (38) E.L.T. 176 (Tri) in which the Tribunal has also referred to the Supreme Court judgment in the case of M/s. Empire Industries. In this case, the Tribunal has distinguished the facts from M/s. Aruna Industries and have emphasised that the Appellants had produced the items in their own factory and sent them back to VSP. The learned DR has urged that once it is held that goods were manufactured then it should not make any difference whether the products are utilised in the same factory or sent elsewhere. We consider that the learned DR is right in pleading that if it can be demonst ..... X X X X Extracts X X X X X X X X Extracts X X X X
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