2015 (10) TMI 841 - AT - Central Excise

Duty demand - value of Trading goods clubbed into the demand - assessee was manufacturing computer system as well as trading activity of parts of computers. - Held that - Advocate appeared before the Commissioner (Appeals) and requested that whatever they have submitted before the earlier Appellate authority and the documents submitted earlier holds good for the purpose of passing of the order in the present proceedings. It is also submitted that the invoices represent only the sale of parts and not computer system and therefore, demand of duty on trading goods cannot be sustained. In our considered view, the Commissioner (Appeals) should have examined the documents of the trading goods. - we set aside the impugned order. The matter is remanded to the Commissioner (Appeals) to decide afresh - Decided in favour of assessee.

Summary

Issues:
1. Classification of goods under Central Excise Tariff Act, 1985.
2. Treatment of trading goods in relation to manufactured goods.
3. Adequacy of examination of documents by Commissioner (Appeals).

Analysis:
1. The case involved the classification of goods under Chapter 84 of the Schedule to the Central Excise Tariff Act, 1985. The Appellants were engaged in manufacturing Computer Systems and trading parts of computers. The Tribunal noted the previous appeal where the Commissioner (Appeals) allowed the re-sale of parts to be non-dutiable. However, the Revenue appealed, leading to a remand by the Tribunal for re-consideration.

2. The main contention raised was the inclusion of the value of trading goods with the value of the computer system. The Appellant argued that the Commissioner (Appeals) did not adequately review the documents and invoices related to the trading goods. The Appellant emphasized that the invoices only reflected the sale of parts, not the entire computer system. The Tribunal found that the Commissioner (Appeals) should have thoroughly examined the documents pertaining to the trading goods to make an informed decision.

3. Consequently, the Tribunal set aside the impugned order and remanded the matter to the Commissioner (Appeals) for a fresh decision after considering all relevant documents. The Appellant was directed to present all documents during the re-examination. The Appellant assured cooperation during the proceedings, and the Commissioner (Appeals) was urged to expedite the resolution due to the case's age. Both appeals were allowed by way of remand, emphasizing the need for a comprehensive review of the trading goods' treatment in relation to the manufactured computer systems.