9911796707
TMI Blog2000 (5) TMI 634X X X X Extracts X X X X X X X X Extracts X X X X ..... ) pumps, classifiable under Item No. 30-A of the said tariff. Prior to June 1985, PIL were paying central excise duty on rotors and stators even when used captively. They, however, stopped paying the duty thereafter. Under show cause notice dated 26-12-1989, Central Excise duty was demanded for the period February 1985 to February 1986 alleging suppression of facts. It was alleged that PIL had never submitted any classification list for manufacture of rotors and stators to be used by them captively in the manufacture of PD Pumps. The costing data was arrived at on the basis of the declaration by PIL which declaration was counter signed by their Cost Accountant. The adjudicating authority confirmed the demand of Rs 2,02,903.66 and imposed a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mps. (ii) No account had been maintained of the rotors and stators used in PD Pumps and the quantity in respect of which central excise duty was evaded was worked out on the basis of the number of PD Pumps manufactured. (iii) Rotors and stators are not built in situ in the PD Pumps. They are manufactured separately before their use in the manufacture of PD Pumps. All the manufacturers of PD Pumps do not themselves manufacture electric motors/rotors and stators, and when not so manufactured, they are bought from outside as specific separate excisable commodities. (iv) The addition of the profits and the overheads while arriving at the cost of rotors and stators had been done on proportional basis. (v) The claim of the appellants that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facture of rotors and stators was distinct, separate and complete in itself, and at the end of the manufacturing process, the rotors and stators represented a completed product. The Apex Court also held in that decision that there can be no estoppel against the law. 6. We find that the similar view had earlier been taken by the Tribunal in the case of Saga Windel Engineers Pvt. Ltd. v CCE, Ahmedabad, order No. 159/1988-B1, dated 5-4-1988 in appeal No. E/1520/84-B1. The Tribunal had held that the rotors and stators which went into the manufacture of monoblock pump sets were classifiable as parts of electric motors. 7. The learned Consultant had referred to the Tribunal's decisions in the case of (i) El.P.Em. Industries v. CCE, C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onversion cost and the margin. We find that in the present case the costing has been done on the basis of the information supplied by the assessee, and the overheads etc. have been added on proportional basis. We do not find any infirmity in the view taken by the adjudicating authority in this regard. 8. Thus in so far as the demand of central excise duty is concerned, we do not find any merit in this appeal. However, in the facts and circumstances of the case, the amount of penalty is reduced from Rs. 50,000/- to Rs. 20,000/- (rupees twenty thousand only). 9. Subject to the reduction in the amount of penalty from Rs. 50,000/- to Rs. 20,000/- only, (rupees twenty thousand only) the appeal is otherwise rejected. Ordered accordin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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