Final Order Nos. A/233-234/2014-WZB/C-II(EB) in Appeal Nos. E/1536 & 1553/2012-Mum. Case: Colour Roof (India) Ltd. Vs Commissioner of Central Excise. CEGAT (Customs, Excise & Gold (Control) Appellate Tribunal) & CESTAT (Customs, Excise and Service Tax Appellate Tribunal)
|Case Number:||Final Order Nos. A/233-234/2014-WZB/C-II(EB) in Appeal Nos. E/1536 & 1553/2012-Mum|
|Party Name:||Colour Roof (India) Ltd. Vs Commissioner of Central Excise|
|Counsel:||For Appellant: Vinay S. Sejpal, Advocate and For Respondents: Ahibaran, Addl. Commissioner (AR)|
|Judges:||P.R. Chandrasekharan, Member (T) and Anil Choudhary, Member (J)|
|Issue:||Central Excise Act, 1944 - Section 11AC|
|Judgement Date:||February 12, 2014|
|Court:||CEGAT (Customs, Excise & Gold (Control) Appellate Tribunal) & CESTAT (Customs, Excise and Service Tax Appellate Tribunal)|
Anil Choudhary, Member (J), (West Zonal Bench, Mumbai)
As the appeals arise from a common order-in-original, they are being taken up together for disposal. The appellant, M/s. Colour Roof (India) Ltd., is a manufacturer of colour coated steel coils and sheets of Heading No. 7210 90 90 and aluminium colour coated coils and sheets of Heading 760 9290 (sic) of the Central Excise Tariff Act, 1985 and is registered with the Central Excise department. The goods manufactured are dutiable and accounted in daily production registers i.e. RG1 and also files monthly returns under Rule 12 of the Central Excise Rules, 2002. The appellant is also availing the benefit of CENVAT credit on inputs, input services and capital goods which are used in or in relation to the manufacture of excisable goods as visualized under Rules 2(a), 2(k) and 2(1) read with Rule 3 of the CENVAT Credit Rules, 2004. All the inputs are received under the cover of appropriate duty paying documents for which appropriate CENVAT account is stated to be maintained and CENVAT credit returns filed periodically. Some of the inputs used by the appellant are GP coils, Galvanised coils, CR/HR coils, aluminium coils, paint and other pre-treatment chemicals.
It is stated that in the factory of the appellant they have four lines of production. One line is for colour coating, second line is for lab line, third line for cut to length and fourth line for slitting. The manufacturing process comprises of cleaning of coils, pre-treatment of coils (chemical treatment of the coils), prime coating, baking, water quenching, finished coating, finished baking, quality inspection, slitting and cutting into sheets, weighment and packing. The appellant further stated that they had spare capacity as their installed capacity was not fully utilised and the factory used to remain out of production for about 10 days in a month. During the month of March, 2010 there was shortage of iron and steel rolled products and there was an upswing in the prices of MS flat rolled products in sheet form. Accordingly, the appellant having available stock of MS/GP in coil form, they decided to liquidate/reduce the stock. They manufactured/converted the said MS/GP coils into cut to size sheets as per customers' specifications by subjecting the same to degreasing cleaning, de-coiling and cutting to sheet as per size. This job was done by using the existing line of production for the third line meant for cut to...
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