2002 (7) TMI 182 - AT - Central Excise

Summary

Issues:
- Whether placing scanners and keyboard wedges in a pouch amounts to manufacture for excise duty purposes.

Analysis:
The case involved three appeals filed by M/s. Bartronics India Ltd., challenging an Order-in-Original passed by the Commissioner of Central Excise, Hyderabad. The issue revolved around whether placing scanners and keyboard wedges in a pouch constituted manufacturing of an excisable commodity. The appellants argued that the activity did not amount to manufacture, citing precedents and a Circular issued by the Department accepting that combining different items in a kit does not constitute manufacture. They also referred to various Tribunal decisions supporting their stance. On the other hand, the Revenue contended that activities such as testing and assembly undertaken before clearing the goods constituted manufacturing. They highlighted statements and catalogues indicating the party's role as a manufacturer of barcode hardware and systems. The Tribunal analyzed the submissions, considering the definition of 'manufacture' as bringing into existence a new substance. They emphasized that for excise duty to be levied, there must be a transformation resulting in a new and different article with a distinct name, character, or use. Referring to previous decisions and the facts of the case, the Tribunal concluded that placing scanners and keyboard wedges in a pouch did not change their character or use significantly to constitute manufacture. Therefore, they accepted the party's plea, allowing the appeals with any consequential relief.

This detailed analysis of the judgment provides a comprehensive overview of the issues involved and the Tribunal's reasoning behind their decision.