KCP LIMITED Vs. COMMISSIONER OF CENTRAL EXCISE, GUNTUR

JUDGEMENT

(1.) THE assessee as well as Revenue are in appeals against the same Order -in -Original No. CE -29/99, dated 30 -11 -1999 passed by the Commissioner, Central Excise, Guntur. Therefore, all the appeals were heard together and are disposed of by this common order.

(2.) BRIEFLY stated, the background and facts leading to the passing of the adjudication order are this. M/s. KCP Limited, Macherla entered into a Hydel Power Development agreement dated 16 -8 -94 and 18 -1 -95 with the Andhra Pradesh State Electricity Board. Under the Agreement, M/s. KCP Ltd. was to set up a Hydel Power Project at Kallaguntla on the Nagarjuna Sagar Right Canal. M/s. KCP Ltd. entrusted the fabrication of items like Stop Log Gates, Draft Tubes, Trash Rocks etc. which were required for the hydel project, with M/s. Lakshmi Engineering. The items so fabricated were required to be transported to the Hydel Power Site and installed. A show cause notice dated 6 -11 -97 was issued alleging that M/s. KCP Ltd. was liable to pay duty on the items fabricated. The impugned order has confirmed that demand. In addition, penalties have also been imposed on M/s. KCP Ltd. (the alleged manufacturer) and the officers of M/s. KCP Ltd. as well as Lakshmi Engineering Works.

(3.) M /s. KCP Ltd. has been resisting the demand on two grounds -