2005 (11) TMI 343 - AT - Central Excise

Summary

The judgment by Appellate Tribunal CESTAT, Mumbai involved a case where the appellants were manufacturing Pneumatic Cylinders and Valves using rubber seals procured from other manufacturers. The dispute arose when the seals were cleared as replacement parts by the appellants. The tribunal ruled in favor of the appellants, stating that resale of seals as spare parts is a trading activity, not manufacturing, and hence duty payment was not required. The petition to dispense with pre-deposit of duty amount and personal penalty was unconditionally allowed.