9911796707
TMI Blog2023 (10) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... owers for Transmission lines, substation structures falling under Chapter 7308 of Central Excise Tariff Act, 1985. They also undertake the process of galvanization on job-work basis. Alleging that the process of galvanization undertaken by the appellant on job-work basis amounts to manufacture in view of Chapter Note 4 to Chapter 73 of Central Excise Tariff Act, 1985, show-cause notice was issued to them on 01/11/2007 for recovery of the central excise duty amounting to Rs. 49,32,879/- (Rupees Forty Nine Lakhs Thirty Two Thousand Eight Hundred and Seventy Nine only) for the period from March 2004 to October 2006 along with interest and penalty. On adjudication, the demand was reduced to Rs. 9,00,957/- (Rupees Nine Lakhs Nine Hundred and Fif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h the appellant carried out galvanization on job-work basis, but failed to discharge service tax on the same, as the process of galvanization does not amount to 'manufacture'. Accordingly, the appellant paid service tax amounting to Rs. 9,32,846/- (Rupees Nine Lakhs Thirty Two Thousand Eight Hundred and Forty Six only) for the period from 18/04/2004 to 26/10/2006 and thereafter discharged service tax accordingly. He submits that in the impugned order, the adjudicating authority has confirmed the demand observing that the process of galvanization being resulted into 'manufacture', therefore the appellant is required to discharge duty on the said process and directed appropriation of the amount paid as service tax on the process of galvanizat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (Rupees Two Thousand Four Hundred and Seventy Six only) as interest observing that the procedure prescribed under Notification No. 214/86 has not been observed undertaken in the said process of galvanization for unregistered manufacturers. Further in the audit conducted in November, 2006, the Department itself raised an objection holding the view that the process of galvanization since does not amount to manufacture, therefore service tax is applicable for carrying out the said process on job-work basis. Consequently, an amount of Rs. 9,32,846/- (Rupees Nine Lakhs Thirty Two Thousand Eight Hundred and Forty Six only) has been recovered as service tax from the appellant. Under these circumstances, it is difficult to sustain the order of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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