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TMI Blog2011 (5) TMI 383X X X X Extracts X X X X X X X X Extracts X X X X ..... above declaration of law, we hold that no manufacturing activity was being undertaken by the appellant, thus requiring them to pay any duty of Excise. Consequently no duty is required to be confirmed against them and no penalty is required to be imposed. - Decided in the favour of the assessee - E/989/2008 - - - Dated:- 5-5-2011 - Mrs. Archana Wadhwa, Dr. P. Babu, JJ. Shri Pradeep Jain, Chartered Actt. for the Assessee; Shri R.Srova, JDR for the Revenue. Per: Mrs. Archana Wadhwa: Vide their impugned order, the lower authorities have confirmed the demand of duty of Rs.14,14,080/- (Rupees Fourteen Lakhs, fourteen thousands and eighty only) and has imposed equal amount of penalty on the appellant under the provision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etc. Thus, no manufacturing activity has taken place in our factory. The Excise duty is on the manufacture of the goods. Since there is no manufacture of the goods and hence no duty can be demanded from us. Therefore, the complete demand is not sustainable. The proceedings initiated against us should be dropped. 4. For the said purpose, they have relied upon the Tribunal s decision in the case of M/s Bharat Textiles Proofing Indus. Vs. CCE Chennai as reported in 2006 (202) ELT 278. The adjudicating authority did not follow the said decision on the ground that the same has not been accepted by the department and an appeal has been filed their-against before Hon'ble Supreme Court of India, which stand admitted and is pending for fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f manufacture. 7. In any case, we find that the issue no more res-integra and stand settled by the latest decision of the Tribunal in the case of CCE Chennai Vs. M/s Tarpaulin International as reported in 2010 (256) ELT 481 (SC). It stands observed in Para 23 of the judgment as under: 23. Is there any manufacture when Tarpaulin sheets are stitched and eyelets are made? In our view, it does not change basic characteristic of the raw material and end product. The process does not bring into existence a new and distinct product with total transformation in the original commodity. The original material used i.e., the tarpaulin, is still called tarpaulin made-ups even after undergoing the said process. Hence, it cannot be said that the p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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