9911796707
TMI Blog2000 (11) TMI 217X X X X Extracts X X X X X X X X Extracts X X X X ..... ties in their factory and as such the extended period of limitation was available to the Revenue. As such by adding the amounts relatable to repairing/re-conditioning/servicing/re-installation/re-commissioning realised by the appellants from their customers into the total progressive value of clearances, it has been held that the appellants had exceeded the aggregate value of clearances in terms of the small-scale exemption notifications, on which they were required to pay central excise duty. 2.Appearing on behalf of the appellant Shri K.K. Banerjee, ld. Advocate submits that the original adjudicating authority as well as the appellate authority has not disputed the fact that the appellants were undertaking the job of repairing/re-condit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sis, audit teams from central excise have verified the documents. Further referring to their various letters received by the department on 4-4-1986, 21-4-1986, 4-10-1986, 20-2-1992, 15-12-1995, 4-7-1996 and 6-7-1996, it has been strongly argued that the Revenue was in knowledge of the fact of their undertaking repairing activities and as such no mala fide intention can be attributed to them justifying invocation of longer period of limitation. 4.Shri R.K. Roy, ld. JDR, appeared for the Revenue and reiterated the reasoning of the authorities below. He submits that as observed by the adjudicating authority, appellants were not undertaking replacement of minor parts in the storage batteries, but were completely dismantling old and damaged ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Revenue. The objection of the Revenue seems to be that inasmuch as the said activity involves total dismantling of the defective batteries, replacement of defective cells or other parts, replacement of most essential parts i.e. ESB plates and replacement of assets trickle charging and certain other activities, the same cannot be treated to be as repairing activity. The Deputy Commissioner in para 6.12 of his order has observed as follows :- It can be clearly observed from the assessee's submissions"6.12 that this case differs from the facts contained in the CEGAT case cited above inasmuch as in the case of repairing of transformer, only a few minor parts like transformer coil and H.T. leg coils were changed and the repairing activ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l socket, side guard, cell top-guard and battery crate etc. are not replaced at all. They may be given a new look by undertaking the process of derusting, depainted by burning or by wire brushing or chipping, acid washing etc. or by giving coats of anti-corrosive primer and finish paints. But by no stretch of imagination such an activity can be said to be a manufacturing activity, by applying the ratio of the decision of Tribunal referred supra. As such I hold that the inclusion of value of such activity towards the aggregate value of total clearances is not justifiable. 7.Apart from the merits of the case I also find force in the appellants' submission as regards limitation. In their letter dated 4-4-1986, 21-4-1986 the appellants have c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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