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TMI Blog2006 (8) TMI 25X X X X Extracts X X X X X X X X Extracts X X X X ..... the demands made in the show cause notice and proposing the penalty. However, the appellant approached the CEGAT, Madras. The CEGAT in its Final Order Nos. 1782 1783/98 dated 10.09.98 remanded the case directing the adjudicating authority to examine whether stranding of wires amounts to manufacture particularly in terms of the new tariff. Accordingly, the adjudicating authority passed the impugned order. In the impugned order, the Commissioner held that the process of stranding amounts to manufacture. Therefore, he confirmed a duty demand of Rs 75, 57,768/- under Rule 9 (2) read with proviso to sub section 1 of Section 11A of the Central Excise Act, 1944. Interest under 11AB was demanded. Further, he confirmed the demand of Rs. 80,364/- u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nger period under Section 11A. (v) All the job workers are registered SSI units. They filed declaration under Rule 173B and 173G. They cleared goods on payment of duty under Rule 173F or at nil rate of duty to APSEB on account of the appellants and submitted RT 12 returns as per Rule 173G of Central Excise Rules. (vi) The Commissioner has relied on the Tribunal's decision in the case of General Industrial Corporation Vs. Collector of Central Excise, Kanpur, 1995 (7) RLT 99 (CEGAT-B1)=1995 (77) ELT 210 (Tri.) which held that "Conversion of galvanised stranded stay wire (GSS wire) out of GI wires by stranding 7 or 8 single galvanised wires amounts to manufacture in terms of Section 2 (f) of Central Excise and Salt Act, 1944, utility and s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , twisted and tied in knots. In terms of strength and utility, Galvanized stranded wire is different from Galvanised single wire. Galvanised stranded wire, is fit for use, as stay wire while the Galvanised single wire out of which Galvanised stranded wire was produced was not usable for such purposes. Thus, Galvanised stranded wire is a new and different article with distinct name, character and use. 28. Any commodity is said to have marketability if it comes to the market for being bought and sold. In this case also, stranded wire is also a marketable commodity, since it is capable of being bought and sold in the market." The case laws relied on by the appellants relates to drawing of wire from wire rods. We agree with the learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... GSS wires, there is a process of manufacture under the provisions of the Central Excise Law. There is also a specific entry under chapter heading No. 7312.10 for stranded wire which is not the case in the old tariff. In view of the above, the contention of the learned Chartered Accountant that the case law relied on by the adjudicating authority is against the Apex Court decision in Aluminium Industries case (supra) is not correct because the issue of whether stranding amounts to manufacture is not at all an issue in the Aluminium Industries case decided by the Supreme Court. The Commissioner has rightly held that the stranding process amounts to manufacture and the decision of the Tribunal in the General Industrial Corporation (supra) is r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... work for which manufacturing and other expenses on prorate basis works out to Rs. 91.39 lakhs as job charges. However the appellants incurred Rs. 0.613 lakhs for the total job work. In view of the above theory advanced by the appellant at later stage is not acceptable to the Commissioner. In view of Sri K. Gopal Rao's admission, there is enough justification for invoking the longer period. As regards the duty demand on the goods found short, the appellant is not contesting. In the case of penalty on Shri K. Gopal Rao, the same is not being contested. In view of the above findings, we uphold the Order-in-Original with the following modification. The penalty on the appellants under Rule 173 is reduced to Rs. 7, 50,000/- (Rupees Seven lakhs a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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