9911796707
TMI Blog2001 (1) TMI 541X X X X Extracts X X X X X X X X Extracts X X X X ..... e Railways. 2. The appellants are engaged in the manufacture of armature coils which they are supplying to the Railways as finished spares. There is no dispute regarding the armature coils which was in a finished condition and were being sold to the Railways as such, in respect of which duty was being paid by the appellants at the appropriate rates. The dispute relates only to the armature coils which are not being sold to the Railways as spares, but are being used for the repair of armatures. As per the appellants the armature coils so used by them in the repairing activity are in an incomplete and unfinished form and are not in a marketable condition and hence cannot be called as armature coils. 3. In Appeal No. E/R-428/99, the above ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. of India given on 19-2-1998, he submits that it has been clearly opined that the samples of the armature coils received by the said organisation cannot be taken as finished spare coils. Further as regards the characteristics of coils before fitment into the armature, the report states that the coils must have dimentional accuracy and must withstand the prescribed test voltage before fitment into the armature. As such, submits the ld. Sr. Advocate that the report clearly show that the coils forming the subject matter of the cases did not acquire the essential characteristics of a finished armature coils as per specifications of the Railways. 6. Elaborating on his arguments, it has been explained to us that the process adopted by the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uestion in the form in which they were used could not be either called or supplied as armature coils as known in the trade and particularly confirming to these specifications prescribed by the Railways. Referring to the various decisions of the Hon ble Supreme Court, it has been argued that marketability of the product is one of the essential conditions for excisability of the same and inspite of the appellants contending that the goods are not marketable, Revenue has not produced any evidence to show the marketability of the same. 7. Shri R.K. Chowdhury, ld. Advocate along with Shri B.N. Pal, ld. Advocate appearing on behalf of the Revenue and reiterated the reasoning of the authorities below. 8. After appreciating the submissions made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or seasoning of insulation under heat and pressure in a die for another cycle for a fixed duration. With this process the coils attain the dimensional accuracy, compactness and certain amount of immunity to ingress of moisture and dust. Both the samples received have lost insulation with micanite sheet fluffy uneven and also there is no final lay of glass mica tape duly compacted. The coils, therefore, have not passed the stages (a), (b) and (c), as stated above, and hence cannot be taken as finished spare coils. Since the coils are not in a finished stage, the testing for the desired voltage would be pre-mature. Para 2(a)(ii) : What are the character ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd may be scrapped since the same have not been stored under controlled temperature and, are very old. In view of the above, the coils sent under above Test memos are unfinished coils. As mentioned, these coils have not been moulded twice and the final layer of glass fibre tape has not been provided in the slot portion of the coils. The coil insulation is fluffy and uneven which is not a desirable feature as per the technical requirements. Thereafter, these coils cannot be used for armature of traction motors as spare coils. Submitted to Hon ble CEGAT as directed. A reading of the above test report shows that the finished coils, which can be supplied to the Railways must have inner layer insulation and micanite insulation. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... marketable goods and hence not excisable. They have claimed that inasmuch as the goods in question have no standard specification and having thinner dimension in the slot portion, which required extra insulation material for fitting in the slot of the armature, no customer will purchase the same since he cannot use it for re-winding purpose. The above contention of the appellant has been rejected by the Commissioner by observing that any person in the field can use the coil by applying the same process as adopted by the said noticee i.e. by using extra insulating material wherever necessary. So the goods in question can be brought to the market and sold to customers in the ordinary course. However, it is seen that the Revenue has not produ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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