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TMI Blog2015 (10) TMI 2349X X X X Extracts X X X X X X X X Extracts X X X X ..... entries in diaryA-38. Therefore, the co-relation statement cannot be relied upon. On the contrary, the contention of the ld. Counsel is that he has supplied the co-relation statement and corresponding invoices to the adjudicating authority but the same has not been considered, this fact is to be examined by the adjudicating authority. - As the impugned order has not complied with the directions of the Hon'ble Apex Court, moreover, have also not examined the co-relation of the diary A-38 with the corresponding invoices, therefore, the matter needs examination at the end of the adjudicating authority. Therefore, we set aside the impugned order and remand the matter back to the adjudicating authority - Decided in favour of assessee. - E/994, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rt by the Department on the ground that the process of converting H.R. Steel Coils/strips into C.R. Strips amounts to manufacture. The Hon'ble Apex Court disposed of the civil appeal filed by the Revenue to consider and record findings on the following questions and disposed of the matter before them:- Whether the Excise authorities have led any evidence before the first adjudicating authority on the question as to whether cold rolled strips are the result of a process of manufacture undertaken by the respondents, or whether the material referred to in the order of the Assistant Commissioner is based upon his own personal knowledge or is based on authoritative publications? The burden is on the department to prove that the process ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he ADGCEI, New Delhi to demand duty of excise on the goods allegedly cleared clandestinely and also proposed penalties and recovery of interest on duty evaded. It is to be noted that during the investigation of the case and in the earlier adjudication proceedings before the then Commissioner, C.Ex., Adj., New Delhi, the notices did not even once dispute the excisability of their finished product namely C.R. Strips. It is further note that even when they filed appeal against Commissioner's order confirming duty evaded and imposition of penalty and interest before Hon'ble CESTAT where for the first time they put up an argument regarding cold rolling not amounting to manufacture, the notices continued to pay excise duty on clearances o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that is known as Pickling. (ii) After Pickling H.R. Coils are rolled in the Rolling Mill to get the required thickness. (iii) After rolling the material is annealed in bell furnace. (iv) After this slitting and packing is done as per the requirement of party. 13.2 The notices have further pleaded that mere reduction of thickness did not amount to manufacture as defined under Section 2(f)of the Act. The notices also referred to the Hon'ble Supreme Court's decision in case of UOI Vs. Delhi Cloth Mills - 1997 (1) ELT J-199 (SC). I observe that since the noticees on their own had accepted the processes of cold rolling as excisable and accordingly, were paying duty on clearances of C.R. Strips from their factory all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ablishes that the end product has an independent identify of its own i.e. C.R. strips. The buyers place specific orders for C.R. Strips of specific thickness and not for H.R. Strips. I, therefore, hold that a new and distinct article emerges through the processes to which H.R. coils/strips were subjected to. 8. He in para 18.6 also observed as under:- 18.6. The noticees have further submitted that each and every entry contained in the diary A-38 has been co-related with the entries made in the RG-1 Register. However, except making the bald statement, the noticees have not given any details co-relating each and every entry of diary A-38 with the entries made in the RG-I register so that submissions in this regard could be examined. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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