9911796707
TMI Blog1998 (6) TMI 262X X X X Extracts X X X X X X X X Extracts X X X X ..... that the demand of duty over Rs. 70 lakh is on account of the fact that the Commissioner, Central Excise has treated that the process of manufacture of metal containers by the applicants themselves with the aid of power is a process of manufacture for products like paste, polish and thinners, even though in the process of manufacture of those pastes, polish and thinner etc., no process with the aid of power is carried on. Ld. Advocate submitted that it is a well settled position by now by a number of Tribunal s judgments, that the power used in the manufacture of inputs cannot be taken as equally to the manufacture of finished product inasmuch as the inputs in their own right are separate and independent commodity. This position has also be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lishes and thinners etc. are concerned stating that those goods are not marketable without the use of metal containers and therefore, the process of manufacture of metal containers by the applicants themselves will be taken as towards the process of manufacture of the aforesaid product viz. pastes, polish and thinners. Consequently, the benefit of Notification No. 222/77-C.E., dated 15-7-1977 and Notification No. 230/86-C.E., dated 3-4-1986 will not be available. He also submits that there has been evasion of duty by the applicants therefore, the penalties were also justified. Similarly on the other count, he submits that in the absence of an exemption Notification in respect of demand of duty, the applicants, have manufactured thinners in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sions advanced in both sides. We observe that in respect of duty of Rs. 70,48,686/-, the applicants have a strong prima facie case in view of several judgments of the Tribunal cited by the ld. Advocate as also on analogy of Board s Circulars, one of which is already referred to above. The use of power in the manufacture of inputs cannot be taken into account for the purpose of determining whether power has been used in the manufacturing process of finished goods. Power has been used in the manufacture of metal containers or poly containers whether manufactured by the applicants or outside. The use of power in the said two products cannot be taken to be use of power in the manufacture of pastes, polishes, thinners etc. as held above. 6. We ..... X X X X Extracts X X X X X X X X Extracts X X X X
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