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1994 (1) TMI 300 - AT - Central Excise
Issues Involved: Classification of goods under different headings, whether the activity amounts to manufacture u/s 2(f) of the Central Excises and Salt Act, 1944, and computation of duty payable.
Classification of Goods: The appellants, engaged in manufacturing Wadding, Bandages, and Gauze, contested the classification under Heading 30.04, while claiming it should be under Heading 30.03. The Assistant Collector upheld the original classification, leading to the appeal. Manufacture Activity: The appellants contended that their activities did not amount to manufacture u/s 2(f) of the Act, citing precedents like Cable House v. Collector of Central Excise. They argued that processes like bleaching and cutting did not constitute manufacturing. Legal Precedents: Various legal precedents were cited to support the argument that certain activities, such as branding, repacking, or converting materials, do not amount to manufacturing, as established in cases like Deputy Commissioner v. Pio Food Packers. Duty Computation: The appellants also raised the issue of permissible deductions u/s 4(4)(d)(ii) while computing duty payable. They argued that deductions should have been allowed, referencing cases like Vapi Paper Mills Ltd. v. Collector of Central Excise. Judgment: The Tribunal permitted the appellants to raise the additional ground related to manufacturing activity. It was held that the processes undertaken by the appellants did amount to manufacture, as the goods were transformed and rendered fit for specific uses, meeting the criteria set by the law. Duty Assessment: The Tribunal rejected the contention regarding permissible deductions for duty computation, as the authorities had already allowed deductions towards Export turnover tax and freight. The appellants' plea for abatement of duty from the assessable value was also dismissed, as they had not paid duty during a specific period. Conclusion: The appeal was dismissed as lacking merit, affirming the original classification and duty computation decisions made by the authorities.
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