JUDGMENT
S.L. Peeran
1. The Stay and appeal arise from Order-in-Appeal No. 73/2000 (CBE) dated 18.10.2000. As the issue is covered by large number of judgments, therefore the matter has been taken up for decision as per law.
2. The appellant is a contractor having taken up the activity of manufacturing the RCC Poles for Tamil Nadu Electricity Board (TNEB), Tatabad, Coimbatore. The contract clearly indicates that the relationship is that of principal to principal basis and therefore, after due consideration of all the material evidences, both the authorities have held that appellant is the manufacturer and liable to pay duty on the final product cleared by him, i.e. the RCC poles. In this regard, the Commissioner (Appeals) has relied on the judgment in the case KSEB v. CCE reported in 1990 (47) ELT 62.
3. We have heard Shri Kalaichelvan, Partner of the firm and Ld. DR Shri Sundarranjan. The partner of the appellant firm contends that they were receiving all the materials from the TNEB and they are entitled to the benefit of SSI exemption and they are not liable to pay the duty.
4. Ld. DR submits that in the Order-in-Original, the Assistant Commissioner has given them the benefit of SSI exemption and duty has been confirmed only with regard to the clearance beyond the exempted limit. In the circumstance, both the authorities have not imposed penalty. In view of all the appeals of TNEB having been allowed by this bench on the ground that the contractor is the manufacturer, therefore there is no merit in this appeal.
5. We have carefully considered the submission and we agree with Ld. DR that there is no merit in this appeal. Already, all the appeals of TNEB have been allowed by this bench holding that the relationship between TNEB and the contractor is on principal to principal basis and it is the contractor who is liable to pay the duty. In the circumstance, applying the ratio of the decision rendered by this bench in the case of TNEB v. CCE vide final order No. 866 to 867/2001 dated 31.5.2001, we find no merit in this appeal and reject the same. The Stay application is also rejected accordingly.
(Dictated and Pronounced in open Court)