Per S.S. Sekhon :

Appellants are an assessee (herein after refers to M/s. PSL) are interalia engaged in manufacture of spiral welded steel pipes at the unit at Daman and the General Manger of the appellant company.

2.1 While pipes manufactured at Daman, are cleared as 'bare pipes' from the "Pipe Mill" to another unit of M/s. PSL referred to as "Coating Unit" where cement/coal tar coating or PE coating is effected as per requirements of the customer thereafter coated pipes are cleared to the customers site over a distance of 20 Km to 1800 kms, depending upon the location.

2.2 Issue is valuation of pipes, removed from the 'Pipe Mill' without paying duty, on value of coating effected at 'coating mill' not reckoned on the count that coating does not amount to manufacture the said part of duty as well as on transport charges collected upto the delivery site ex. Daman plant or and on profits made on excess of Transport charges over actuals following Baroda Electric Meters V/s CCE 1997 (22) RLT 5 (SC)=1997 (94) ELT 13 (SC)for the period prior to 1.7.2000 was not discharged. After the amendment to Section 4, for the period 1.7.2000 to 30.6.2001 the appellants submits that on a belief t