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TMI Blog2000 (4) TMI 401X X X X Extracts X X X X X X X X Extracts X X X X ..... vokable for demanding Central Excise duty in facts of the matter? 2. Shri V. Lakshmi Kumaran, learned Advocate, submitted that the appellants make brass barrels and brass liners out of brass pipe/tubes purchased in auction conducted by Sugar Mills and Thermal Power Plants; that they heat up tube up to the temperature of 700 C, soak them in Sulphuric Acid and thereafter in Nitric Acid in order to remove the impurities and other foreign materials present in the tubes, then the tubes are taken to tube pointing machine where the edges are pointed manually, finally the tubes are taken to straight benches wherein these are straightened, here the diameter of tube increased to suit the requirement of the customer; that the tube is fixed on the st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sions. The rod or bar of metal is pulled through a series of dies of decreasing diameter until the final shape is obtained. Finally he referred to Metals Handbook, IXth Edition, in which it is mentioned that in the drawing process the cross-sectional area and/or the shape of rod bar, tube or wire is reduced through a die. 3. The learned Advocate emphasised that it is evident from these technical books that drawing essentially consists of pulling the pipe or tube through die in order to reduce the wall thickness and inner/outer diameter of the tubes whereas in the appellant's case the dies are pulled through the tube in order to get the desired shape for brass liner or barrels and consequently this process cannot be said to be drawing. He ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ements and these barrels fall under Heading 84.24 of the Tariff which is wholly exempt under notification No. 141/88; that Range Suptd. visited their factory and studied the process undertaken by the appellants and sent a letter dated 16-10-1991 to the appellants in which it was mentioned that they were engaged in drawing or redrawing of old brass pipes and tubes and were directed to take Central Excise licence and to fulfil formalities. He further mentioned that one of the product i.e. parts of pumps used for agricultural implement would qualify for exemption under notification No. 111/88 and they would allow to clear the same at nil rate of duty. The learned counsel mentioned that the appellants thereafter took out a central excise licenc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the process undertaken by them amounts to drawing only. He pointed out that it is mentioned in The New Encyclopaedia Britannica that tubes are sometime drawn through a die to reduce the inside and outside diameter; that this shows that the process can also work in reverse direction and drawing can be used for increasing the diameter of the product. He also refers to Metals Handbook in support of his contention that instead of the product the die may be moving. According to Metals Handbook, in drawing with a moving mandrel the mandrel travels at the speed at which the section exits the die. This process, also called ironing, is widely used for thinning the walls of drawn cups or shells. The learned SDR also submitted that thinning of walls ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nvocable. 6. We have considered the submissions of both the sides. The entire demand is beyond the normal period of 6 months as the show cause notice was issued on 24-10-1996 covering the period from November, 1991 to January, 1996. We agree with the learned counsel that the demand is hit by time- limit as specified in Section 11A of the Central Excise Act. The larger period of limitation is not invocable in view of the various correspondence exchanged between the appellants and the department since the insertion of Note 2 to Chapter 74 of the Central Excise Tariff. It cannot be claimed by the department that it was not aware of the process undertaken by the appellants as the first letter dated 10-10-1991 was written by the Range Suptd. h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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