9911796707
TMI Blog2008 (11) TMI 172X X X X Extracts X X X X X X X X Extracts X X X X ..... uts. SFSL were eligible for Modvat credit. – Held that demand is not sustainable. - E/924-925, 932/2003 & E/1193/2004 - 1308-1311/2008 - Dated:- 17-11-2008 - Ms. Jyoti Balasundaram, Vice-President and Shri P. Karthikeyan, Member (T) Shri S. Venkatachalam, Advocate, for the Appellant. Shri N.J. Kumaresh, SDR, for the Respondent. [Order per : P. Karthikeyan, Member (T)]. - Appeals No. E/924/03, E/925/03 E/932/03 are filed by the assessees and No. E/1193/04 is filed by the Revenue, all against Order in Original No. 23/2003 dated 15-7-03 passed by the Commissioner of Central Excise, Chennai-II, Commissionerate. 2. On 14-10-97, officers of the department visited the premises of M/s. Super Forgings Steels Ltd (SFSL), Mod ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3. Arguing the case of the appellants, the Ld. Counsel submitted that SFSL had converted steel black bars into bright bars. They had also got steel black bars converted into bright bars by MFPL on job work basis. The Apex Court had decided in Vee Kayan Industries v. Collector of Central Excise, Chandigarh [1996 (83) E.L.T. 262 (S.C.)] that the said activity did not constitute manufacture for the purpose of charging excise duty. Therefore, the demand of duty for the alleged clandestine clearances of bright bars was not sustainable. SFSL had taken Modvat credit of duty paid on steel black bars, as they were inputs. SFSL were eligible for Modvat credit. SFSL did not manufacture any excisable goods. The charges of clandestine clear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rough a slight narrow diameter resulted in bringing out a new commodity, the finding that it changed in form or shape without any evidence cannot be accepted. In the absence of any material to show that in commercial circle the bars and bright bars are different, the inference drawn by the Tribunal cannot be upheld." Therefore, conversion of steel black bars into bright bars does not constitute manufacture. In the result we find that the impugned demands of duty, Modvat credit and interest are not sustainable. As the demands are not validly made, penalties also cannot be sustained. Accordingly we set aside the impugned order and allow the appeals filed by the assessees. 6. Appeal No. E/1193/04 filed by the revenue seeks to deny the be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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