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TMI Blog2016 (1) TMI 435X X X X Extracts X X X X X X X X Extracts X X X X ..... pin Garg, Adv For the Respondent : Shri S Nunthuk, JCDR ORDER Per Sulekha Beevi CS The appellant is engaged in manufacture and supply of towers to Rajasthan Rajya Vidyut Prasarn Nigam Ltd. In the contract entered between the parties there is a condition that the tower has to be tested before clearing the same to the buyer. To fulfill this condition the appellants send the towers in a knock dow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the Commissioner (Appeals) upheld the same vide the impugned order. Being aggrieved the appellants are before the Tribunal. 2. We have heard both sides and perused the appeal records. 3. The short issue involved is whether the appellant's are liable to pay duty on the tower manufactured, and send for destructive testing. 4. The Central Excise Rules permits a manufacturer to remove excisab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ting before clearing to the buyer. After job work what was received back was not goods but scrap only. Though the appellants received charges from the buyer towards 'testing of tower upto destruction including cost of tower' the towers were removed to the premises of M/s.KEC International Ltd. for destructive testing in a knocked down condition and undeniably goods at that stage were not e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rs be subjected to such tests. The Tribunal held that no duty is payable on such cylinders which during the process of manufacture were destroyed, 7. In Traco Cable Company Ltd, vs. Commissioner, Cochin-2000 (126) ELT 0643, the issue was whether the length of three meters of cables cut and removed from each drum for destructive testing is liable to payment of duty. The Tribunal observed that as t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... scrap. Appellant clears scrap on payment of duty. Thus, the process of destructive testing being integrally connected with the ultimate production of final product, it cannot be said that appellants have cleared any goods liable to duty. 9. In view of the foregoing discussion, and the propositions laid in the above judgements, we hold that the impugned order is not sustainable. The same is set a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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