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TMI Blog1997 (8) TMI 171X X X X Extracts X X X X X X X X Extracts X X X X ..... generator sets. These generator sets consist of following components such as (1) Base plate (2) I.C. Engine (3) Alternator and (4) Control Pannel The contention of the appellants is that generator sets are assembled by them without the aid of power. The appellants have filed C/List claiming the exemption on generator sets under Notification No. 179/77, dated 18-6-1977. A show cause notice was issued to the appellants alleging that exemption under Notification No. 179/77, dated 18-6-1977 is not available to them since the power is used in the manufacture of M.S. Chassis of generating sets which become a process incidental or ancillary to the completion of the manufactured product. The Asstt. Collector, Central Excise vide order dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of the Delhi High Court in the case of Jain Soap Mills v.U.O.I. reported in 1979 (4) E.L.T. (J 147) and submitted that the Hon ble High Court in this case held that `soap in or in relation to the manufacture of which no process has been carried on with the aid of power or steam, refers to the use of power or steam in manufacture of soap only and not to the use of power or steam in the manufacture of raw materials by which soap is manufactured. He also relied upon the decision of the Tribunal in the case of G.S. Industries v. C.C.E., reported in 1989 (43) E.L.T. 148, in the case C.C.E., Guntur v. Bombay Foods Pvt. Ltd. reported in 1994 (69) E.L.T. 748, in the case of Eastern Metal Ferro Alloys Ltd. v. C.C.E., Bhubaneshwar reported in 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the base plate/M.S. Chassis which is one of the component used for assembling the Gen Sets were manufactured with the aid of power. 7. Notification No. 179/77-C.E., dated 18-6-1977 provides as under : Exemption to goods produced without the aid of power. In exercise of the powers conferred by sub-rule (1) of the Central Excise Rules, 1944, the Central Govt. hereby exempts all goods falling under Item No. 68 of the First Schedule to the Central Excises and Salt Act, 1944 (1 of 1944), in or in relation to the manufacture of which no process in ordinarily carried on with the aid of power from the whole of the duty of excise leviable thereon : Provided that nothing contained in this Notification shall apply to sandal wood oil. (Not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in a factory occurred. We do not think that there is any substance in this contention. The Notification purports to allow exemption from duty only when in relation to the manufacture of the goods no process is ordinarily carried on with the aid of power. It is not disputed that the cutting of the steel wires or the treatment of paper is a process for the manufacture of goods in question. Since those processes were carried on with the aid of power though carried outside the factory, the requirement of the Notification would not be answered so as to entitle the appellants to exemption from duty. It is not necessary to refer to any authority inasmuch as on the analysis indicated above the claim for refund appears to have been rightly rejected ..... X X X X Extracts X X X X X X X X Extracts X X X X
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