P.C. Jain, Member (T)

1. The appellants M/s. Tata Robins Fraser Ltd. manufacture machinery items falling under Tariff Item 68 in their factory at Jamshedpur. They undertake construction of projects on contract basis. These contracts include civil and structural work, supply of machinery and equipment, their erection and installation etc. Machinery and equipment required for the execution of their works are partly manufactured in their own factory at Jamshedpur and partly procured in the market. They also get certain items manufactured in other factories as per specifications raw material supplied by them.

2. The appellants had undertaken 52 contract works between 1-3-1975 to 31-12-1981 of the total value of Rs. 17,43,00,149/-. For the execution of these contracts they had cleared machinery items from their factory at Jamshedpur on payment of duty. Total amount of duty paid on those items was Rs. 33,44,00,880/-. It was alleged in a show cause notice dated 16-1-1982 against the appellants as follows:-

"M/s. TRF Ltd., Jamshedpur knew that as per standing orders and instructions, the goods falling under T.I. 68 which are cleared in knocked down condition to be assembled at site and o