AJINKYA ENTERPRISES Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THIS stay petition has been filed by the applicants against the impugned order passed by the Commissioner (Appeals). The Commissioner (Appeals), vide the impugned order, upheld the Order -in -Original dated 9.1.2008 passed by the Additional Commissioner confirming the demand of duty of Rs. 43,50,756/ - and Rs. 44,71,526/ -together with interest and imposing equivalent penalties of Rs. 43,50,756/ - and Rs. 44,71,526/ -.

(2.) HEARD both the sides and perused the records.

(3.) THE applicants' case is that the Circular dated 02.03.2005 states that de -coiling, cutting and slitting does not amount to manufacture but does not refer the processes of pickling and oiling as not amounting to manufacture and; that the 8 digit Central Excise tariff has two independent tariff heading TSH 72083840 for unpickled HRS sheets/strips and 72082690 for picked HRS sheets/strips. Therefore, the activity undertaken by them amounted to manufacture and they were entitled to the credit of the duty paid on the inputs. The Commissioner (Appeals), on the other hand, has held that the process of cutting, slitting, pickling etc. does not amount to manufacture as per the Board's circular dated 02.03.2005. She has further held as under: -