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TMI Blog2001 (10) TMI 347X X X X Extracts X X X X X X X X Extracts X X X X ..... imit specified in Section 11A(1) of the Central Excise Act. 2. Shri K.K. Anand, learned Advocate, submitted that the Appellants manufacture steel ingots and castings of iron and steel; that as they wanted to set up one more furnace in their factory; they through contractor erected a permanent structure being Shed No. 2 which was fixed on the earth; that the structure was raised out of duty paid iron and steel articles supplied by them; that the shed had not been fabricated by them and as such no duty of excise can be demanded from them; that Shri Jagjit Singh, Executive Director, in his statement dated 28-8-1989, had clearly deposed that the impugned goods were fabricated by the Contractor and this fact is mentioned in Para 3(iii) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cutting, welding does not amount to manufacture as held in CCE v. Akay Powerline Products (P) Ltd. - 2001 (130) E.L.T. 678 (T). Reliance was placed on the following decisions : (a) C.C.E., Jaipur v. Man Structurals Ltd., 2001 (130) E.L.T. 401 (S.C.) = 2001 (44) RLT 113 (S.C.) (b) Virdi Brothers v. C.C.E., Indore, 2001 (132) E.L.T. 86 (T) (c) Triveni Engg. Industries Ltd v. C.C.E., 2000 (120) E.L.T. 273 (S.C.) (d) C.C.E. v. Supdt. Engineer, 2001 (131) E.L.T. 510 (T) 3.2 Finally he submitted that the Appellants had informed the Range Superintendent, under letter dated 3-1-1989, of their intention about construction of a new shed; that correspondence was also exchanged between the Department and the Appellant; that under letter da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... State of Saurashtra, AIR 1957 S.C. 264. He also relied upon the decision in the case of Bharat Seats Ltd. v. C.C.E., New Delhi III, 2001 (137) E.L.T. 955 (Tribunal) = 2001(44) R.L.T. 826 (CEGAT) wherein the Tribunal did not find the person who carried out the fabrication work as independent Contractor and held him to be a hired labour in absence of any proof that machines, tools, welding equipments, etc. were brought by the job worker. The learned DR also contended that what determines whether a person is a workman or an independent contractor is whether he has agreed to work personally or not; if he has, then he is a workman and the fact that he takes assistance from other person would not affect his status. 5. The learned DR further, s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11A(1) is invokable. In reply, the learned Advocate mentioned that in the statement recorded on 28-8-1989, all the figures were supplied to the department; that there was no mention in show cause notice that the contractor was a hired labourer; that on the other hand he was treated as a manufacturer as duty was also demanded from him. He also relied upon the decision in the case of C.C.E., Baroda v. M.M. Khambhatwala, 1996 (84) E.L.T. 161 (S.C.) wherein goods were produced by household ladies in their own premises out of the raw materials supplied by the respondents who paid wages on the basis of number of pieces manufactured and such ladies were held to be the manufactures of the goods and not as hired labourer . 6. We have considered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion was suppressed by the Appellants. If the Department was of the view that the activity undertaken by them amounted to manufacture, they should have directed the Appellants to take out a licence and to maintain necessary statutory accounts and follow the excise procedure. Merely non furnishing of information called by them will not amount to suppression of facts or contravention of any provisions with an intent to evade payment of duty in view of the fact, which is not in dispute, that they had kept the Department informed about the Construction and completion of the shed. The ratio in the decision of Madras Petro Chem is not applicable as in that case, the Appellants therein had deliberately suppressed the material particulars in respec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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