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TMI Blog2006 (12) TMI 326X X X X Extracts X X X X X X X X Extracts X X X X ..... it was done and the operators names, as also the quantity of the GSDs and ROFs subjected to such processes. It is not disputed that these production log books were before the Revenue authorities. There was no reason to discard such contemporaneous documentary evidence which indicated the manufacturing process of broaching, drilling, turning etc. on ROFs by simply relying on the bald statement made on the spur of the moment by the authorised representative of the appellant. It is nobody s case that production log books have been subsequently prepared. The particulars mentioned therein which are brought to our notice clearly speak of manufacturing process to which ROFs (semi-finished) and GSD (castings) were subjected to. Unfortunately, thi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... part of the appellant. The facts would also indicate that since the amount higher than the Modvat credit availed was paid by way of excise duty, then there could no intention to evade payment of duty. Obviously, therefore, there was no valid ground for invoking the extended period of limitation. Thus, the impugned order cannot be sustained and is hereby set aside. The appeal is accordingly allowed. - Justice R.K. Abichandani, Shri C.N.B. Nair, JJ. REPRESENTED BY : Shri B.L. Narasimhan, Advocate, for the Appellant. Shri Deepak Gar, DR, for the Respondent. [Order per : Justice R.K. Abichandani, President]. - This appeal is before us on a remand made by the Hon ble High Court of Punjab and Haryana High Court by o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nputs under Rule 57A of the said Rules. While inspecting the records, the Revenue noticed that the appellant was receiving duty paying rotor oil filters and gear shaft drums in their factory and were taking Modvat credit of the duty paid thereon, but were clearing them as such without using them in relation to the manufacture of any final product. It was alleged that the appellant wilfuly made a mis-declaration that rotor oil filters (RODs) and gear shaft drums (GSDs) were manufactured by them in their factory from the castings of rotor oil filters and the castings of gear shift drums. According to the Revenue, they had received fully manufactured rotor oil filters and gear shaft drums. The Revenue relied upon the statement of the authori ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as described was adopted on the semi-finished ROFs, and the statement of Mr. Karmakar that only visual inspection was done while clearing the goods ought not to be have been to infer as non-existence of the such broaching, drilling and tapping processes carried on the semi finished ROFs. Furthermore, the processes of outer dia-turning, drilling both sides, and tapping was undertaken on the gear shaft drum castings. Therefore, since manufacturing process was undertaken, the appellant was entitled to avail Modvat credit paid on the inputs brought in the nature of castings. It was further argued that if there was no manufacturing process then there would obviously be no liability to pay any duty on the outgoing goods. Therefore, the question ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ribunal held while dealing with the contention of the Revenue that the process carried by the assessee did not result in manufacture of goods, that: if that be the case, there would be no case for payment of duty on flywheels by the appellant either, that renders the whole dispute academic as there would be no requirement to pay duty and the occasion to take Modvat credit . It was observed that credit taken would also be a dead entry incapable of being used for any purpose. 8. There is no dispute over the fact that the amount of excise duty paid on the finished goods was higher than the amount of the Modvat credit on the castings of ROFs and GSDs, which was availed in respect of the outgoing finished products. It is clear from the reply ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ked by the learned Commissioner. It will also be noticed from Section Note 6 of Section XVI of the Schedule to the Tariff Act that in respect of the goods covered by Section XVI (machinery and mechanical appliance etc.) conversion of an article which is incomplete or unfinished but having essential characteristic into complete or finished article shall amount to manufacture. 7. Apart from the fact that the assessee had satisfactorily established the nature of manufacturing processes to which these two items had undergone before they were removed on payment of excise duty on the value added basis, it is also not disputed that the total amount of excise duty paid was much higher than the Modvat credit availed in respect of these items. 7. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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