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Navom Infra Power Pvt. Ltd. and Others V/S CCE & ST, Jaipur and Others.

Company & Directors' Information:- J T L INFRA LIMITED [Active] CIN = L27106CH1991PLC011536

Company & Directors' Information:- H N COMPANY INFRA PRIVATE LIMITED [Active] CIN = U45201NL2005PTC007743

Company & Directors' Information:- N A R INFRA PRIVATE LIMITED [Active] CIN = U45209TG2010PTC066556

Company & Directors' Information:- T AND T INFRA PRIVATE LIMITED [Active] CIN = U45200PN2012PTC144893

Company & Directors' Information:- P. K. INFRA AND POWER COMPANY PRIVATE LIMITED [Active] CIN = U40108OR2009PTC011437

Company & Directors' Information:- S R C INFRA PRIVATE LIMITED [Active] CIN = U45200KA2014PTC073052

Company & Directors' Information:- S G F INFRA PRIVATE LIMITED [Active] CIN = U45400JK2013PTC003837

Company & Directors' Information:- R E INFRA PRIVATE LIMITED [Active] CIN = U74999MH2007PTC175255

Company & Directors' Information:- M Y C INFRA PRIVATE LIMITED [Active] CIN = U45400UP2013PTC055996

Company & Directors' Information:- A R INFRA PRIVATE LIMITED [Active] CIN = U45202AS2008PTC008561

Company & Directors' Information:- R K INFRA(INDIA) PRIVATE LIMITED [Active] CIN = U45201KA2010PTC054009

Company & Directors' Information:- R S POWER AND INFRA PRIVATE LIMITED [Active] CIN = U74900MH2004PTC149136

Company & Directors' Information:- I V INFRA PRIVATE LIMITED [Active] CIN = U45309PB2008PTC031932

Company & Directors' Information:- M & B INFRA LIMITED [Active] CIN = U70109PB2012PLC036738

Company & Directors' Information:- A H INFRA LIMITED [Active] CIN = U31501WB2010PLC155151

Company & Directors' Information:- V & H INFRA PRIVATE LIMITED [Active] CIN = U45203MH2008PTC181787

Company & Directors' Information:- V INFRA AND POWER PRIVATE LIMITED [Active] CIN = U40101TG2011PTC072562

Company & Directors' Information:- S R U INFRA PRIVATE LIMITED [Active] CIN = U70102UP2014PTC065614

Company & Directors' Information:- S G U INFRA PRIVATE LIMITED [Active] CIN = U70102UP2015PTC071682

Company & Directors' Information:- K C POWER INFRA PRIVATE LIMITED [Active] CIN = U93090MH2010PTC207422

Company & Directors' Information:- N. S. INFRA PRIVATE LIMITED [Active] CIN = U45200UP2021PTC142424

Company & Directors' Information:- M G D INFRA PRIVATE LIMITED [Active] CIN = U45400UP2015PTC069886

Company & Directors' Information:- K R D INFRA PRIVATE LIMITED [Active] CIN = U45400TZ2020PTC034945

Company & Directors' Information:- M A INFRA POWER PRIVATE LIMITED [Active] CIN = U45400DL2016PTC290276

Company & Directors' Information:- Z INFRA LIMITED [Strike Off] CIN = U45201OR2009PLC010795

Company & Directors' Information:- S B M INFRA PRIVATE LIMITED [Strike Off] CIN = U45201TR2010PTC008299

Company & Directors' Information:- S INFRA PRIVATE LIMITED [Under Process of Striking Off] CIN = U45201OR2012PTC016064

Company & Directors' Information:- J D C INFRA PRIVATE LIMITED [Strike Off] CIN = U45209HR2012PTC045407

Company & Directors' Information:- S S P L INFRA PRIVATE LIMITED [Strike Off] CIN = U45201OR2011PTC013469

Company & Directors' Information:- Y. M. INFRA PRIVATE LIMITED [Active] CIN = U45400MH2010PTC211055

Company & Directors' Information:- V V INFRA PRIVATE LIMITED [Active] CIN = U45200TG2008PTC059111

Company & Directors' Information:- R V G INFRA PRIVATE LIMITED [Strike Off] CIN = U70200DL2011PTC219732

Company & Directors' Information:- S P G N INFRA PRIVATE LIMITED [Active] CIN = U45200AP2015PTC096326

Company & Directors' Information:- Y. C. INFRA PRIVATE LIMITED [Active] CIN = U45400WB2010PTC151352

Company & Directors' Information:- J K S INFRA (INDIA) LIMITED [Active] CIN = U45209PB2012PLC036363

Company & Directors' Information:- J S N INFRA (INDIA) LIMITED [Active] CIN = U45400UP2012PLC050189

Company & Directors' Information:- R V J INFRA PRIVATE LIMITED [Active] CIN = U45200DL2013PTC249181

Company & Directors' Information:- J J INFRA INDIA PRIVATE LIMITED [Active] CIN = U45209AP2011PTC078174

Company & Directors' Information:- A R INFRA (INDIA) PRIVATE LIMITED [Active] CIN = U70109MP2007PTC020049

Company & Directors' Information:- G K V INFRA PRIVATE LIMITED [Strike Off] CIN = U45200PN2011PTC141814

Company & Directors' Information:- M R K INFRA PRIVATE LIMITED [Active] CIN = U45209TG2012PTC080558

Company & Directors' Information:- L G INFRA PRIVATE LIMITED [Strike Off] CIN = U45400TN2014PTC095310

Company & Directors' Information:- J G INFRA PRIVATE LIMITED [Active] CIN = U45209CH2012PTC034095

Company & Directors' Information:- E & P INFRA PRIVATE LIMITED [Strike Off] CIN = U74999DL2014PTC271401

Company & Directors' Information:- T & T INFRA INDIA PRIVATE LIMITED [Strike Off] CIN = U70109DL2015PTC276336

Company & Directors' Information:- K T INFRA PRIVATE LIMITED [Strike Off] CIN = U70200DL2010PTC199408

Company & Directors' Information:- A 4 INFRA PRIVATE LIMITED [Strike Off] CIN = U70100DL2012PTC233921

Company & Directors' Information:- K & H INFRA PRIVATE LIMITED [Active] CIN = U45209AP2013PTC090417

Company & Directors' Information:- C D E F INFRA PRIVATE LIMITED [Active] CIN = U45200KA2011PTC057888

Company & Directors' Information:- M M D INFRA PRIVATE LIMITED [Strike Off] CIN = U70101GJ2013PTC075444

Company & Directors' Information:- P M D INFRA PRIVATE LIMITED [Active] CIN = U45201GJ2007PTC050762

Company & Directors' Information:- V & T INFRA PRIVATE LIMITED [Strike Off] CIN = U70100TG2008PTC061671

    Excise Appeal Nos. 50293-50296 of 2017 (Arising out of Order-in-Original No. JAI-EXCUS-000-COM-14-16-17 dated 28.10.2016 passed by the Commissioner of Central Excise Jaipur (Raj)) and Final Order Nos. 50216-50219/2018

    Decided On, 10 January 2018

    At, Customs Excise Service Tax Appellate Tribunal Principal Bench New Delhi

    By, MEMBER

    For Petitioner: Amit Jain and Rahul Tangri, Advocates And For Respondents: R.K. Mishra, AR

Judgment Text

1. The present appeals are cross appeals filed by the appellant as well as by the Department against the order in original No. Jai-EXCUS-000-Com-14-16-17 dated 28.10.2016. Period of dispute is April, 2009 to March, 2013.

2. Brief facts of the case are that the appellant is engaged in supply of various bought out items known as "BPL Kits" to provide the electricity connection to below poverty line (BPL) households. Such BPL kits are provided under the Rajiv Gandhi Grameen Vidyutikaran Yojna of the Government of India and they are procured from nodal agencies like State Electricity Boards, NHPC, NTPC, Power Grid Corporation of India Ltd. etc, for ultimate supply to the BPL households.

3. The BPL Kits comprise, inter alia, of all or some of the following items:

i) Board (Wooden or Polycarbonate)

ii) D.P. Switch

iii) Kit-Kat Fuse

iv) Piano Switch

v) Bulb Holders

vi) CFL Bulb

vii) MCB

viii) PVC Saddle

ix) PVC Elbow

x) Nuts, Bolts, Screw & GI Wire

xi) PVC/GI Pipe etc.

4. The department demanded the duty on these items. Being aggrieved, the appellants have filed the present appeals.

5. On the other hand, for computation of period of 5 years which goes against the SSI exemption, the department has filed the present appeal.

6. With this background, we heard Shri Amit Jain, Shri Rahul Tangri and Shri R.K. Mishra, learned counsel for the parties and gone through the material available on record.

7. After hearing both the sides, it appears that identical issue has came up before the Tribunal for consideration in the case of M/s. TGL Enterprises Pvt. Ltd. vs. CCE Delhi I [Final Order No. 58605-58606/2017 dated 28.12.2017] wherein it was observed that:-

15. We note that except in two categories of clearances, there is no evidence to show that the appellant-assessee is even putting together an assembly of various electrical components and accessories in order to make any new identifiable product. Here, it is necessary to find that even if the goods were cleared and identified as BPL Kit, whether such goods can at all be considered as a new excisable item. Here, the main thrust of the Revenue is that there is an assembly process undertaken by the appellant-assessee. We note that mere putting together of two or more items by itself will not make an assembly of a new item. In M/s. Narang Latex and Dispersions (P) Ltd. : 2001 (134) ELT 482 (Tri.- Bby.), the Tribunal held that when the appellant cleared the nipples manufactured by them by attaching them with bought-out bottles, the process of attaching the rubber nipples with the bottles and packing together for clearance will not amount to manufacture. The said order of the Tribunal was affirmed by the Apex Court, 2000 (139) ELT A-392 (SC). In M/s. Shivam Enterprises: 2017 (345) ELT 550 (Tri.-Del.), assembling audio cassettes without magnetic tap was found to be not a process of manufacture. In M/s. Medtronics (P) Ltd., 2006 (199) ELT 347 (Tri.- Bby.), the Tribunal held that "Custom pack" made by the appellant by adding parts like plastic tubes, connectors, blood filters, caps, oxygen, etc. cannot be held to be a process of manufacture. No new product emerges when these parts are put together in a pack for a ready-to-use condition. The said decision of the Tribunal was affirmed by Hon'ble Gujarat High Court in : 2015 (323) ELT 738 Gujarat and further affirmed by the Apex Court reported in 2015, ELT A48 (SC).

16. In the present case, the Revenue seeks to classify the product cleared by the appellant-assessee under tariff heading 85371000. We have perused the various types of items in different combinations cleared by the appellant-assessee. Samples were shown at the time of hearing. We note that the appellant-assessee did not undertake any process in the form of assembling the electrical components and accessories which will result in a new identifiable product having a different character or use. The electrical components or switches are mounted on the board before clearance. The goods cleared by the appellant were generically called as 'BPL Kit.' It is apparent that the method of clearance is mandated by the terms of agreement with their clients. There is no standard commercially identifiable item which is available for sale or purchase in the market. In other words, there is no 'BPL Kit' commercially known and marketed. The clearances made by the appellant-assessee to the various clients as per their requirement are not any new manufactured product, commercially identifiable as 'BPL Kit.'

17. The original authority upheld the duty demand partly, on the ground that the process of mounting two components/items on the wooden or plastic board would amount to manufacture. We are not in agreement with such finding. The electrical components, MCB and kit-kat fuse mounted on the board do not lose their identity and assume a different character and use after such process. The MCB and kit-kat fuse are mounted on the board for their function as electrical components. The addition of these two on the board does not create a new commercially identifiable product in the present case. The Revenue did not produce any evidence or did not even assert that these are commercially known and marketed product. The electrical components retained their name, character and use and there is no new commercially identifiable product emerging in the present case. Further, we find force in the appellant's contention against the classification adopted by the original authority in respect of part of the clearances made by them The mounted electrical components on the board does not make the board as an item for electric control or the distribution of electricity.

18. In view of the above detailed analysis, we find that the appellants have not manufactured any dutiable item attracting central excise levy during the material time. They have got themselves registered and paid central excise duty w.e.f. December, 2013 as they themselves

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started manufacturing certain items from that period. We find the impugned order is not sustainable in so far as it confirms certain duty liability on part of the clearances, on the appellant-assessee. We upheld the original authority order with reference to the finding for dropping the demand raised against the appellant-assessee. 19. In view of the above, we allow the appeal by the appellant-assessee and dismiss the appeal by the Revenue." 8. By following our earlier order (supra), we set aside the impugned order and allow the appeal filed by the appellant. Appeal filed by the department is dismissed. (Dictated and pronounced in the open Court)