ELECON ENGINEERING CO LTD Vs. UNION OF INDIA

JUDGEMENT

(1.) The petition is filed to challenge seven show cause notices issued by respondent Nos.2 and 3, because according to the petitioner, the issues raised in the show cause notices are on the same grounds which have already been decided in favour of the petitioner in number of proceedings relatable to earlier periods.

(2.) The petitioner Company is engaged in the manufacture of Material Handling Equipments and parts thereof and is holding a license under the Central Excise Act, 1944 (the Act) and Central Excise Rules, 1944 (the Rules). The petitioner is discharging duty liability on the goods manufactured in its factory before / at the time of clearing the said manufactured goods. During course of its business activity, the petitioner Company undertakes manufacture and supply of plant and machinery on the basis of what is known in common parlance as Turn Key Projects. That for such activity, the petitioner utilises certain components which are manufactured and cleared from its factory after bearing the duty under the Act, certain other items / components purchased from open market which are duty paid, and lastly, it carries on erection, fabrication and commissioning of the entire plant at the site as per terms of contract. It is the case of the petitioner that, in past, the respondent authorities had issued similar show cause notices in relation to (1) bought out items on which duty had been paid, and (2) on the process of erection, fabrication and commissioning of the project. That the petitioner having tendered its explanation by filing replies to the various show cause notices, the authorities had adjudicated upon the same and passed various orders in original as well as the order in appeal whereunder it was held by the authorities that the petitioner was not liable to pay any duty either on such bought out items or on the activity of erection, fabrication and commissioning of the project. In support of the aforesaid submission, at Annexure "A" (collectively) various such orders have been placed on record. A summary of the said orders reads as under : <FRM>JUDGEMENT_281_TLGJ0_2005Html1.htm</FRM>

(3.) It appears that another order in original bearing No.11/Commissioner/97 dated 31st December 1997 had been made by respondent No.2 confirming the duty liability on bought out items. The petitioner carried the matter in appeal before the Tribunal. The said appeal came to be decided by the Tribunal, New Delhi on 8th June 1999 vide its final order No.812/99-A. While deciding the said appeal, the Tribunal in the said order has not assigned any independent reasons, but has merely followed its own order passed in case of the petitioner for earlier periods which is reported in Elecon Engineering Co. Ltd. v. Collector of Central Excise, Chandigarh, 1999 (107) ELT 337 (Tribunal), and the same was rendered on 12th February 1999.