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TMI Blog2016 (11) TMI 230X X X X Extracts X X X X X X X X Extracts X X X X ..... the facts as to what type of new identifiable product emerges from aluminium sections brought in by the main appellant - In such a situation we are unable to agree with the findings of the Original Authority that a new and different article having distinct name, character or use as emerged in the present case. Regarding the second issue of addition of trading activity for the turnover of the appellants to arrive at the SSI exemption, the impugned orders held that the suppliers did not have manufacturing facility and the purchase and sale transaction of the wall mounted brackets is not acceptable - In this connection, the appellant contested that simply because the suppliers from whom they procured these materials do not themselves have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which resulted in the initiation of proceedings against the appellants for demand of duty and for imposing penalties. The two main issues involved in this case are that :- (a) the process carried out by the main appellant on the aluminium channels procured from outside and thereafter supplied to various customers will amount to manufacture, attracting Central Excise levy ; (b) the turnover of wall mounted brackets were not properly recorded in the records of the main appellant as a portion of sale is attributed to trading of items purchased as such. The third appellant is one of the two companies from whom the wall mounted brackets were purported to have been purchased and supplied to customers. The main appellant claims for exclu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e were prepared for particular structure by the process of cutting, drilling and bending in the unit of the main appellant. The Original Authority concluded that the aluminium sections so prepared for use in the structures are not same goods as aluminium sections brought in from the market by the main appellant. It was concluded that the processes undertaken by the main appellant have resulted in bringing in a new and different article having distinct, name, character or use. We find the Original Authority is in error in appreciating the factual and legal issue involved in the present dispute. It is not clear as to how an aluminium section cut to size and drilled/bent wherever required will become a distinct marketable product from the inpu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal Authority that a new and different article having distinct name, character or use as emerged in the present case. As such, we find that the findings of this by the Original Authority cannot be sustained. The same is set aside and this matter requires a fresh consideration by the Original Authority to bring out the factual and legal position, more specifically after appreciating the evidences and nature of processes carried out by the main appellant and also various decided cases on similar set of facts. 5. Regarding the second issue of addition of trading activity for the turnover of the appellants to arrive at the SSI exemption, the impugned orders held that the suppliers did not have manufacturing facility and the purchase and sale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vt. Ltd. and Another vs. Union of India Anr. reported in 2016 TIOL 1230 HC P H CX. and J K Cigarettes Ltd. vs. CCE reported in 2009 (242) E.L.T. 189 (Del.). 6. As already recorded that the matter has to go back to the Original Authority on the first issue as well as, in view of the reasons above, for the second issue also. Accordingly, we aside the impugned order and remand the matter back to the Original Authority for fresh decision. Adequate opportunity shall be given to the appellants to present their case. The procedure stated under Section 9D of the Act shall be followed, as held in the above decisions, wherever statements are relied upon to arrive at the conclusion. With these observations, the appeals are allowed by way of reman ..... X X X X Extracts X X X X X X X X Extracts X X X X
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