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TMI Blog2010 (11) TMI 86X X X X Extracts X X X X X X X X Extracts X X X X ..... elements under chapter sub-heading 85.16 of Central Excise Tariff Act, 1988. Based on a specific intelligence that the appellant company has crossed the SSI exemption limit, during the year 1995-96, 96-97, 97-98 the officers of Chennai IV Division visited the factory of the appellant on 22-5-2000. Scrutiny of the records indicated that the invoices were raised for manufactured goods like aluminum melting furnace, holding furnace, electric resistance, bale out furnace and accessories therefore. Sales invoices were also raised for bought out items like cerwool, ceramic fibre, ceramic blanket, refractory bricks, fire clay, accoset etc. along with the heating elements. The appellant purchased resistance wires/strips from M/s. Kanthal India Ltd ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 997-98. Hence a SCN No. II/IV/4/2001 dated 3-1-2001 was issued by the range officer to demand duty of Rs. 1,82,108/- and to impose penalty." 3. The authorities below have confirmed a demand of duty of Rs. 1,82,108/-, interest on the same and also equal penalty has been imposed under Section 11 AC of the Central Excise Act, 1944. Shri V.P. Namasivayam, learned consultant appearing for the appellants firstly pleads the ground of limitation on two counts. He states that the demand period relates to financial years 1995 - 96, 1996 - 97 and 1997 - 98. The officers visited the appellant's factory on 22-5-2000 and the last statement recorded by the officers was on 30-11-2000, whereas the show-cause notice has been issued only on 3-1-2001. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd they have not submitted any returns or invoices to the department. As such, this ground taken by the learned consultant also requires to be rejected. 5. On merit, learned consultant argues that the appellants have done nothing other than cutting the electrical wires purchased by them and they have only traded the cut wires. These were not heating elements as claimed by the Department. However, we find that there is a statement by the partner of the appellant-company who is a technically qualified person that they have been manufacturing heating elements and he has also admitted duty liability saying that out of ignorance they have not followed the excise procedure and paid duty earlier. Further, we find that there is a specific ent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rnace. By conversion of Nichrome coil into heating element by cutting in to required length and wounding in to a coil a definitely new commodity, distinctive in name and usage has arisen. The purpose of usage of heating element is to generate heat due to the passage of electric current through the wire and the length of the wire determines the desired usage. To increase the length, number of windings of the wire is increased in the coil of the heating element. Therefore, the heating element has different character and use than that of the coil. In the case of Brakes India Ltd. v. Supdt. C. Ex. - 1998 (101) E.L.T. 241, the Honourable Supreme Court has observed in para 15 as under :- "If by a process a change is effected in product, which wa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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