IN THE CUSTOMS, EXCISE AND SERVICE TAX APPELLATE TRIBUNAL EASTERN ZONAL BENCH: KOLKATA REGIONAL BENCH – COURT NO. 2 Excise Appeal No. 76598 of 2017 (Arising out of Order-in-Original No. 03/Commr/CE/ADJN/KOL-V/2017 dated 26.05.2017 passed by the Commissioner of Central Excise, Commissionerate Kolkata- V Kendriya Utpad Shulk Bhawan, 180, Rajdanga Main Road Shantipally Kolkata-

700107)

M/s. Shree Durga Industry, : Appellant Vill- Sanpukur, Khanberia Main Road, P.O. Chatta Kalikapur, P.S. Maheshtala, Dist. South 24 Parganas,West Bengal-700140 VERSUS Commissioner of Central Excise, Kolkata-V : Respondent Commissionerate, GST Bhawan Kendriya Utpad Shulk Bhawan, 180, Rajdanga Main Road Shantipally Kolkata-700107 AND Excise Appeal No. 76599 of 2017 (Arising out of Order-in-Original No. 03/Commr/CE/ADJN/KOL-V/2017 dated 26.05.2017 passed by the Commissioner of Central Excise, Commissionerate Kolkata- V Kendriya Utpad Shulk Bhawan, 180, Rajdanga Main Road Shantipally Kolkata-

700107)

Shri Goldi Sethi, : Appellant Partner of M/s. Shree Durga Industry, Vill- Sanpukur, Khanberia Main Road, P.O. Chatta Kalikapur, P.S. Maheshtala, Dist. South 24 Parganas,West Bengal-700140 VERSUS Commissioner of Central Excise, Kolkata-V : Respondent Commissionerate, GST Bhawan Kendriya Utpad Shulk Bhawan, 180, Rajdanga Main Road Shantipally Kolkata-700107 APPEARANCE:

Shri Indranil Banerjee, Advocate Shri Mukul Agarwal, Advocate for the Appellant Shri A. Mukherjee, Authorized Representative for the Respondent CORAM:

HON’BLE SHRI R. MURALIDHAR, MEMBER (JUDICIAL)

HON’BLE SHRI K. ANPAZHAKAN, MEMBER (TECHNICAL)

FINAL ORDER NOs. 75246-75247/ 2026 DATE OF HEARING: 20.11.2025 DATE OF PRONOUNCEMENT: 17.02.2026 ORDER: [PER SHRI R. MURALIDHAR]

A Show Cause Notice dated 05.05.2016 was issued by the Additional Directorate General DGCEI proposing demand of Central Excise duty Rs.3,32,10,665.00 along with interest on the clearance of Folding Cot with or without Plywood Top for the period 2011-12 to 2014-15 (upto May 2015) and to impose penalty on the appellant firm and Shri Goldi Sethi. The SCN was issued by invoking the extended period provisions. The appellants submitted their replies to Show Cause Notice and also appeared for Personal Hearing. By the Order in Original dated 26.05.2017 the Commissioner of Central Excise, Kolkata –V Commissionerate confirmed the demand of Central Excise duty along with interest and imposed penalties on the appellant firm and the Shri Sethi. Being aggrieved, the appellants have filed the present appeal before the Tribunal.

2. Since both the appeals are arising out of common order, they have been taken up together for disposal.

3. The Ld. Counsel appearing for the appellant firm submits that the appellant is a small scale unit listed in Directorate General of Suppliers and Disposal (DGS&D), Government of India, Rate Contract for supplying Folding Steel Cot frame ( in short Folding Cot ) with or without Plywood Top, Picket Angles and Barbed Wires. On 02.06.2015 the Officers of the Directorate General Central Excise Intelligence (DGCEI), Kolkata Zonal Unit visited the premises of the appellant and seized several records and documents. They have also recorded statements of various persons including the appellant no. 2 herein. He further submitted that the fabricated “Folding Cot Steel Frame” is not “manufacture” within the meaning of 2(f) of the Central Excise Act, 1944 and therefore it liable to be set aside on this ground alone. However, after taking opinion from experts on this issue, the appellant admitted in reply to Show Cause Notice that if the fabrication of Folding Cot would be treated as “manufacture” then the demand of duty would come to Rs. 58,59,681, after considering the SSI exemption benefit.

4. The second grievance of the appellant is that the demand of duty on Folding Cot has been made by the Revenue by adding the value of the Plywood Top, which is not legally sustainable. It is submitted that the fabrication of Folding Cot is an indepe