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TMI Blog2000 (9) TMI 119X X X X Extracts X X X X X X X X Extracts X X X X ..... ere using L.V./H.V. coils made from DPC wire; a show cause notice was issued to them for demanding duty on DPC wire used as insulated wire; that the Dy. Commissioner confirmed duty of Rs. 69,374/- and imposed penalty of equal amount under Rule 173Q of Central Excise Rules holding that the coil is not marketable and DPC wires in the form of LV/HV coils continue to be classified under Heading No. 85.44 of the Central Excise Tariff Act, attracting excise duty @ of 25%. He, further, mentioned that, however, Commissioner (Appeals) set aside the Adjudication Order holding that the findings of the Dy. Commissioner are contradictory to the order passed for confirmation of demand; that if DPC wire remained DPC wire after becoming HV/LV coil, no duty ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... E - 1989 (43) E.L.T. 561 and further Misc. Order, as reported in 1990 (47) E.L.T. 442 (T), has held that duty should be paid on coils and other parts used in the repairing of old transformers; that on appeal the Supreme Court, in East India Transformers and Switch Gears Pvt. Ltd. v. CCE, Meerut - 1997 (92) E.L.T. 449 (S.C.), held that parts manufactured in the Factory and used for repair of old transformer within the factory are exempted under Notification No. 118/75-C.E., dated 30-4-1975. The ld. Consultant, therefore, contended that it is thus clear that the coils are excisable product because the question of payment of duty or 'exemption would arise only when the goods are marketable and excisable. He also referred to the Trade Notice No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The Appellate Tribunal while deciding East India Transformers case held that the repair of transformer does not amount to manufacture and the appellants were liable to pay duty on the value of spare parts manufactured and used in the old transformers. There was no mention of coils in the said decision. The Tribunal did not consider the question whether the coils are goods under the Central Excise Act. We also observe that excise duty cannot be charged second time on DPC wire when they are used in the repairing of old transformers as coils. However, if the Respondents had availed of Modvat Credit under rule 57A of the Central Excise Rules they have to discharge the duty liability on DPC wires equivalent to the Modvat Credit availed of as h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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