9911796707
TMI Blog2016 (12) TMI 1127X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee, a new identifiable, marketable product comes into existence - When the HCFC Slag is an altogether different product, which is subjected to different processes like crushing, grinding, watering etc. and resultant product is only HCFC, which has got separate existence in relation to its raw material namely HCF) and is an identifiable product, having independent marketability, then the yardstick of definition of manufacturing given in Section 2(f) of the Central Excise Act, 1944 is satisfied. It is clear that subject process has not been free from doubt regarding its coverage under the definition of manufacturing under Section 2(f) of the Central Excise Act, 1944 - The matter was not free from doubt, the non-payment of duty of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y been manufactured in the furnace and they are simply separating metals from the Slag where it is embedded. The assessee states that they did not manufacture High Carbon Ferro Chrome (HCFC) Slag in their factory. The raw material used was metal embedded Slag and finished product is also metal - High Carbon Ferro Chrome (HCFC) and thus no new or distinct commodity comes into existence after processing of the raw material. The period of dispute is 12.06.2009 to 12.10.2010. But the Revenue did not accept the plea of the Appellant and by the impugned order levied the duty along with interest and penalties. Being aggrieved, the Appellant-assessee knocked the door of the Tribunal. 3. The Appellants have been represented by Shri B.N.Chattopadh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eir godown. They only undertook the process of separation of Ferro Chrome from Slag. Such process cannot be treated to be manufacture in as much as no Ferro Chrome had been manufactured by the appellant. (iii) The appellant submits that prior to 1.3.2011 Note 4 of Chapter 26 was not there. Chapter Note 4 states that in relation to products of the Chapter, process of converting ores into concentrates amounts to manufacture. The period is prior to introduction of Chapter Note 4 of Chapter 26 of CETA. (iv) The Appellant submits that since the process undertaken by them are not manufacturing process and no new product comes in, they cannot be treated as manufacture within the meaning of Section 2(f) of the Central Excise Act, 1944. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... taken by them are not covered under the definition of Section 2(f) of Central Excise Act, 1944; therefore no Central Excise duty can be charged on their activities, when they bring out HCFC from High Carbon Ferro Chrome (HCFC) Slag. 6.1 Department is treating the whole activity of the assessee Appellant as manufacturing and has made out a case for charging Central Excise duty on the assessee's operations and clearance of High Carbon Ferro Chrome (HCFC). The Revenue has also charged the Appellants with clandestine manufacture and removal of the impugned goods namely High Carbon Ferro Chrome (HCFC). 6.2 There is further contention by the assessee that the Revenue has added Note 4 to Chapter 26 of Central Excise Tariff which is repro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... make any difference to the liability of the Central Excise duty for the present facts. In other words there would be liability on the assessee Appellant to pay Central Excise duty on their product, HCFC, which is certainly a different identifiable and marketable product. Further following the decision of Hon ble M.P.High Court in the case of S.N.Sunderson (Minerals) Ltd. (supra) which on manufacturing has been endorsed by the Hon ble Supreme Court in the case of S.N.Sunderson (Minerals) Ltd. (supra) , the duty liability on the assessee Appellant is hereby confirmed. 7.1 The case laws cited by the assessee Appellant in support of their claim that their activities do not amount to manufacture are not applicable to the present facts ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
