PSL LTD. Vs. COMMISSIONER OF C. EX., RAJKOT

JUDGEMENT

(1.) THE short issue in the present appeal is as to whether the activity of bending of pipes on job work basis would amount to manufacture or not. After hearing both the sides duly represented by Shri. B.L. Narsimhan, ld. Advocate and Dr. M.K. Rajak, ld. SDR, we find that the process undertaken by the appellant was bending of iron and steel pipes is as under :

(2.) LD . Advocate submits that the process of bending pipes does not amount to manufacture as there is no difference between straight and bended pipes. Pipes are required to be laid down under the ground, and wherever there is some hilly area or other obstacle, the pipes are to be bended. He has taken us to the finding of the Commissioner and submits that there is nothing whatsoever, on record to show that such bended pipes are available in the market. He submits that such bended pipes are tailor -made and varies from pipe to pipe. Merely because the value of the bended pipe is higher is not sufficient to hold that manufacturing process has taken place, in as much as no new product having different name, character and use comes into existence. He also assails the Commissioners order on the point of limitation and submits that the only part of the demand approximately amounting to Rs. 60 lakhs would be within limitation.

(3.) LD . Advocate has also brought to our notice the precedence decisions of the Tribunal dealt with the identical disputes and holding that such activity does not amount to manufacture. It is further been pleaded that after 2004, if an activity undertaken by an assessee does not amount to manufacture, the same would be covered by the definition of business ancillary services and the assessee would be liable to pay service tax on the same. The appellant stand registered with the Service Tax Department w.e.f. December, 2004 and being service tax payer on the said activities and such stand accepted by the Revenue. This fact is also indicating that the activity undertaken by the appellant does not amount to manufacture attracting any duty of excise. In any case, it has been pleaded before us that the bended pipes has also been held to be pipes by the Honble High Court of Madras in the case of M/s. Indian Hume Pipe Co. Ltd. [2006 (203) E.L.T. 197 (Mad.)] and as such conversion of pipe into pipes cannot be said to be giving raise to any new identifiable product.