2011 (3) TMI 1196 - AT - Central Excise

Dismantling of old and used D.G. sets and assembling - Whether after using the re-useable parts and new parts amounts to manufacture or not? - Held that - Chartered Engineer s certificate and a Chartered Accountant s certificate with regard to percentage of new components used in the manufacture of D.G. sets produced by appellant - since the lower authorities have not examined the issue on the basis of these certificates, appeal is allowed by way of remand.

Summary

Issues involved: Determination of whether dismantling and assembling old D.G. sets with new and re-useable parts amounts to manufacture.

Analysis:
The appellants contested an order stating that their activity of repairing and maintaining old D.G. sets did not constitute manufacturing. The central issue was whether the process of dismantling old sets and reassembling them with new and re-useable parts qualified as manufacturing. The appellants sought to introduce additional evidence through certificates from a Chartered Engineer and a Chartered Accountant, detailing the percentage of new components used in the process. These certificates were deemed crucial in determining the nature of the activity. Despite the appellants' failure to present this evidence earlier, the tribunal allowed their application to include the certificates on record for a fresh examination of the matter.

The tribunal acknowledged that the lower authorities had not considered the newly introduced evidence while making their decision. Therefore, the tribunal set aside the impugned order and remanded the case back to the original adjudicating authority. The adjudicating authority was instructed to reevaluate the evidence provided by the appellants and determine whether their activity constituted manufacturing. The authority was directed to issue a new order after affording the appellants a fair opportunity to present their case. Consequently, the appeal and the miscellaneous application were resolved in favor of the appellants, with the case being remanded for further examination and decision by the adjudicating authority.