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TMI Blog2016 (6) TMI 1017X X X X Extracts X X X X X X X X Extracts X X X X ..... e activity of making roof bolts did not amount to manufacture. Taking into these aspects and that the issue was an interpretational one, we hold that imposing penalty on appellants is unwarranted. Therefore the equal penalty imposed under Section 11AC of Central Excise Act, 1944 and the penalty of ₹ 10 lakhs imposed for not taking registration cannot sustain. While confirming the demand of duty with interest, penalty set aside. - Decided partly in favor of assessee. - E/131 & 132/2007 - A/30383-30384/2016 - Dated:- 17-5-2016 - Ms. Sulekha Beevi, CS., Member (Judicial) and Shri Madhu Mohan Damodhar, Member (Technical) Shri R. Raghavendra, Advocate for the appellant. Shri Ajay Saxena, Commissioner (AR) for the respondent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the show-cause notice, raising the contention that the activity of making roof bolts does not amount to manufacture. In addition that their unit is an SSI unit registered with DIC, Kareemnagar. The activity involved cutting of torsteel rods/ ribbed bar to required length and one end of each rod is threaded to 100mm width and other end is slightly tapered by forging process i.e. heating and hammering. The process did not amount to manufacture as no new product is emerged. These are used in the underground mines for supporting the roof. That they were under bona fide belief that these manual operations did not entail duty. d. After adjudication, the original authority confirmed the duty demand of ₹ 35,55,127/- along with interest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rned counsel for appellant submitted that the challenge in present appeals is now limited to allow CENVAT credit on the inputs (steel rods), exclusion of bought out items and also to set aside the penalties and redemption fine imposed. We therefore are confining to the discussion of these issues only. 3. The learned AR Shri Ajay Saxena fairly conceded that the appellant is entitled to credit of inputs used in the manufacture of final products. It is submitted that bought out items like nuts and plates which are supplied as per contract and not manufactured by appellant has been included in determining the duty. He pleaded that recomputation is necessary to exclude the value of bought out items. 4. We find that the contention of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the provisions of law, we hold that the imposition of redemption fine is unsustainable. The same is set aside. 7. In the result, the appeals are partly allowed in the following manner : - i. The demand of duty on roof bolts and nuts is sustained. The Range Superintendent is directed to requantify/recompute the duty payable after adjusting eligible CENVAT credit on inputs. The Range Superintendent is also directed to exclude value of bought out items while requantifying the duty payable. ii. The equal amount of penalty imposed under Section 11AC of Central Excise Act, 1944 and penalty imposed under Rule 25 of Central Excise Rules 2002 is set aside. The separate penalty imposed on Shri Mohammed Taher Shareef is also set aside. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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