2004 (12) TMI 570 - AT - Central Excise

Summary

Issues:
- Confirmation of demand on the ground of manufacturing Telephone Exchange
- Dispute over whether the appellants manufactured/assembled the Telephone Exchange

Analysis:
The appellants filed an appeal against the Adjudication order confirming a demand, alleging they manufactured Telephone Exchange. The appellants argued they only supplied parts to the Department of Telecommunication, which then installed them as Telephone Exchange. The Revenue contended that the appellants supplied and assembled the parts, justifying the demand. The Tribunal found the demand was based on the presumption that the appellants manufactured the Telephone Exchange. However, evidence showed the appellants supplied parts cleared on duty payment. The Department of Telecommunication clarified that their staff installed the Exchanges, and purchase orders indicated the appellants only supplied parts. Payment terms further supported this, with no evidence of manufacturing/assembling by the appellants. Consequently, the Tribunal set aside the demand, ruling in favor of the appellants and allowing the appeal.