CUSTOMS, EXCISE & SERVICE TAX APPELLATE TRIBUNAL BANGALORE REGIONAL BENCH - COURT NO. 2 Central Excise Appeal No. 2400 of 2012 (Arising out of Order-in-Original No. 03/CCE/2012 dated 31.05.2012 passed by the Commissioner of Central Excise, Customs & Service Tax, Mysore.)

M/s. Larsen & Toubro (ECC Division)

RLMS – MESCOM Project (CKM) Site Store, MRM Compound, Near Check Post, Kadur – 577 548. ........Appellant(s)

VERSUS Commissioner of Central Excise, Vinaya marga, Siddharthanagar, Mysore – 570 011 ......Respondent(s)

WITH Central Excise Appeal No. 2401 of 2012 (Arising out of Order-in-Original No. 03/CCE/2012 dated 31.05.2012 passed by the Commissioner of Central Excise, Customs & Service Tax, Mysore.)

M/s. Larsen & Toubro (ECC Division)

RLMS – MESCOM Project (CKM) Site Store, MRM Compound, Near Check Post, Kadur – 577 548. ........Appellant(s)

VERSUS Commissioner of Central Excise, Vinaya marga, Siddharthanagar, Mysore – 570 011. ......Respondent(s)

APPEARANCE:

Mr. N. Viswanathan, Advocate for the Appellant Mr. M. A. Jithendra, Asst. Commissioner (AR) for the Respondent CORAM:

Hon'ble Mr. P.A. Augustian, Member (Judicial)

Hon'ble Mr. Pullela Nageswara Rao, Member (Technical)

Final Order Nos. 20269-20270 /2026 Date of Hearing: 11.09.2025 Date of Decision: 10.03.2026 PER: P.A. AUGUSTIAN These Appeals are filed against Order-in-Original No.

03/CCE/2012 dated 31.05.2012 passed by the Commissioner of Central Excise, Customs & Service Tax, Mysore.

2. The issues involved in the present appeals are;

(i) whether the activities carried out by the Appellant amounts to manufacture; and (ii) whether the demand can be confirmed by invoking the extended period of limitation is tenable.

3. The brief facts are M/s. Larsen & Toubro (ECC Division), the Appellant is engaged in construction and assembly of electrical equipment. They are awarded contract for execution of Rural Load Management System (RLMS), in Chikmagalur Division of Shimoga on a turnkey basis including supply of all equipment, material, testing and commissioning. The scope of work includes providing Rural Load Management unit consisting of programmable logic controller, moulded case miniature circuit breaker (MCCB), miniature circuit breaker (MCB), transformers, energy meter and others. As per the information gathered by the Preventive unit, investigation was taken up and consequently, a SCN was issued alleging that the appellant is manufacturing and clearing assembled RLMUs without payment of central excise duty and without following central excise procedures. Thereafter Adjudication authority as per the impugned order held that the activity of assembly of the RLMUs amounts to manufacture and confirmed demand with interest and also imposed penalty under various provisions of Central Excise Act, 1944. Further, penalty was also imposed on the Co-appellant. Aggrieved by said order, present appeals are filed.

4. When the appeals came up for hearing, the Learned Counsel for the Appellant draws our attention to the finding in the impugned order and submits that the above finding is factually incorrect. As per the impugned order, Adjudicating authority held that M/s. L & T., ECC Division, Kadur have sub-contracted the said work of assembly to M/s. SAR Engineering Services, Bangalore, who, in turn, have sub-contracted the said work to M/s. Surabhi Electricals, Kadur. All the raw materials / components required for the said assembly have been purchased by M/s. L & T. ECC Division, Kadur and neither M/s. SAR Engineering Services, Bangalore nor M/s. Surabhi Electricals, Kadur have purchased any raw materials / components. From the quotation / work orders of M/s. Surabhi Electricals, Kadur and M/s. SAR Engineering Services, Bangalore, it is seen that M/s. Surabhi Electrcials, Kadur have provided only manpower to M/s. L & T ECC Division, Kadur for assembly of components into the RLMUs. Thus, the adjudicating authority held that M/s. L & T. ECC Division, Kadur are the manufacturer of the assembled RLMUs in