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TMI Blog2004 (5) TMI 163X X X X Extracts X X X X X X X X Extracts X X X X ..... conversion of DPC wires into coils will not amount to 'manufacture' within the meaning of Section 2(f) of the Central Excise Act, 1944. In that case, M/s. Gwalior Electrical Industries were manufacturing power transformers and parts thereof and were also undertaking repairs of old transformers, for which they were using coils made from DPC wires. Following Punjab State Electricity Board [ 1996 (3) TMI 533 - SC ORDER] and East India Transformers Switch Gears Pvt. Ltd. v. CCE [ 1989 (5) TMI 185 - CEGAT, NEW DELHI] , the Tribunal held that neither the conversion of DPC wires into coils nor the repair of transformer amounted to 'manufacture'. Demand of duty on transformers supplied to IGCAR during the material period is concerne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ows :- Apart from the manufacture of transformers, the appellants are also engaged in the repair/rectification of transformers. Whenever the Double Paper Coated (DPC) copper coils in the transformers supplied to customers got burnt for any reason, during the relevant period, the appellants replaced the same with fresh DPC copper coils. Whenever such replacements were supplied to the customers, they (appellants) paid duty on the goods treating them as transformer parts under Chapter Heading 85.04 of the Central Excise Tariff Schedule. The department took the view that such copper coils were rightly classifiable under sub-heading 8544.90 as insulated wire and not under Heading 85.04 as part of transformer. Accordingly, the department took the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... period of limitation and confirmed the demands of duty against the appellants. It also imposed penalties of Rs. 17,54,172/- and Rs. 2,00,000/- on them under Section 11AC and Rule 173Q respectively. Interest on duty was also demanded under Section 11AB and the same was directed to be quantified by the Range officer concerned. In the appeal preferred by the assessee against the order of adjudication, the Commissioner (Appeals) upheld the demands of duty with interest, but set aside the penalty under Section 11AC and reduced the penalty under Rule 173Q to Rs. 1.5 lakhs. Aggrieved by the demands of duty and the penalty under Rule 173Q, the party has filed this appeal. 2. Heard both sides. Ld. Chartered Accountant for the appellants has challeng ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Research under the Department of Atomic Energy, for research purposes, cannot, by any stretch of imagination, be held to be anything other than scientific instrument equipment or apparatus. Therefore, according to ld. Chartered Accountant, the benefit of exemption under the Notification was available to the transformers supplied to IGCAR during the relevant period. 4. Ld. Chartered Accountant has also pleaded time-bar against the demands of duty. He submitted that all the clearances were made only after filing the necessary classification list/declaration under Rule 173B and no material fact whatsoever was concealed from the department. The allegation of suppression/misdeclaration of facts is baseless and hence the extended period of limita ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... venue has contended that the DPC copper coils are classifiable under sub-heading 8544.90 as insulated wires. But it has been held by this Tribunal in the case of CCE, Indore v. Gwalior Electrical Industries (supra) that conversion of DPC wires into coils will not amount to 'manufacture' within the meaning of Section 2(f) of the Central Excise Act, 1944. In that case, M/s. Gwalior Electrical Industries were manufacturing power transformers and parts thereof and were also undertaking repairs of old transformers, for which they were using coils made from DPC wires. Following Punjab State Electricity Board (supra) and East India Transformers Switch Gears Pvt. Ltd. v. CCE [1989 (43) E.L.T. 516 and 1990 (47) E.L.T. 442], the Tribunal held that ne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d arise after considering this process, it is clear that in this transformation from electrical wire into a part of transformer, there is no moment in time when the coil itself exists independently as a coil. Thus, the coil does not exist at any time as a marketable commodity." The DPC copper coils in question squarely covered by the above ratio and, accordingly, these coils cannot be held to be chargeable to duty. When decisions on excisability of identical goods are available, we need not consider any decision on excisability or classification of different goods. Hence Maharashtra Wire Industries (supra) cited by ld. SDR, wherein the question considered was classification of plastic-insulated galvanised wire rope used in railway signallin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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