9911796707
TMI Blog2024 (7) TMI 422X X X X Extracts X X X X X X X X Extracts X X X X ..... Court of Allahabad. From the said judgment it is observed that if the PD Pumps and IC Engines are not assembled and kept together in one packing and cleared that activity does not amount to manufacture. However, in the present case it is the claim of the appellant that in majority of cases the IC Engine has been fitted with the PD Pumps and the PD Pump set was cleared duly assembled with IC Engine. Therefore, the fact of the case of M/s. Honda Siel Power Products Ltd judgment is different from that of the present case. It is also observed that as regard the Monoblock Pumps there is no dispute that the IC Engine was used in the manufacture of Monoblock Pumps. Therefore, the interpretation and contention applied in the case of PD Pump will n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ected to the common crankshaft of the IC engine and the centrifugal pump and IC engine are coupled together on the base frame/trolley to manufacture PD pumps. The PD pumps are then tested for performance and quality before being cleared. In some cases, the PD pumps are unassembled and cleared in SKD condition for ease of transportation, whereas in most cases, the PD pumps are cleared in assembled condition only. Both the Appellants have sufficient documentary evidence to support the bifurcation of quantity of PD pumps cleared in assembled condition vs. SKD condition since in the case of both Appellants, when the goods are cleared in SKD condition, the supporting Lorry Receipts provide unit of each items cleared i.e. no. of IC engines, no. o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lant M/s Ashok are selling PD Pumps under their own brand name 'REGAL' and also manufacturing PD Pumps for M/s USHA International Limited under the 'USHA' brand. Judgment in the case of Honda Siel Power Products and investigation by the Department. 1.4 On 04.11.2015, the Hon'ble High Court of Allahabad in the case of M/s. Honda Seil Power Products - 2016 (332) ELT 222 (All), held that mere placing of bought out pump and own manufactured IC Engine in a single carton does not amount to manufacture as no new item comes into existence. Based on the above judgment, an investigation was conducted by the Central Excise Commissionerate of Rajkot against various PD Pumps manufacturers located within their jurisdiction, including ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase. 2.1 He further submits that the Ld. Principal Commissioner has also overlooked the fact that the show cause notice entirely relies upon the facts of PD pumps cleared in semi-knocked down condition ( SKD ) whereas only a small portion of the total quantity of PD pumps were cleared in SKD condition and majority of the IC engines were captively consumed in PD pumps which were cleared in assembled form. He submits that allegation made in the show cause notice in any case, cannot be applied to the PD pumps cleared in assembled condition. Therefore, assuming without admitting that the case of the Department, even then the demand of Central Excise duty on IC engines captively consumed in manufacture of PD pumps which are cleared in assembled ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , it was replied that the above orders have been accepted by the department. In view of the Learned Principal Commissioner taken a different view is incorrect and illegal. In support of his submission he placed reliance on the following judgments:- Usha International Ltd. v. CCE, Delhi-IV 2018 (364) ELT 1103 (T) Quippo Energy Pvt. Ltd. v. CCE, Ahmedabad - II 2016 (331) ELT 617 (Tri. - Ahmd.) Leo Circuit Boards Pvt. Ltd. v. CCE, Belapur 2015 (330) ELT 227 (Tri. Mum.) Exide Industries Ltd. v. CCE ST, Delhi - III 2016 (333) ELT 101 (Tri. Del.) Majestic Auto Ltd. v. CCE, Meerut 2001 (130) ELT 551 (Tri. Del.) CCE v. Indo Asian Fuse Gear Ltd. 1993 (68) ELT 207 (T) Rico Auto Indistries Ltd v. CCE 2007 (210) ELT 583 (Tri-Del.) S.M. Telesys Ltd v. C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... majority of cases the IC Engine has been fitted with the PD Pumps and the PD Pump set was cleared duly assembled with IC Engine. Therefore, the fact of the case of M/s. Honda Siel Power Products Ltd judgment is different from that of the present case. 4.1 It is also observed that as regard the Monoblock Pumps there is no dispute that the IC Engine was used in the manufacture of Monoblock Pumps. Therefore, the interpretation and contention applied in the case of PD Pump will not apply in the case of Monoblock Pump. Therefore, there is an error in the order to this effect. We are of the prima facie view that in a case where the PD Pump and IC Engine are cleared in SKD form as per the Hon ble Allahabad High Court Judgment the activity will no ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
