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TMI Blog2010 (5) TMI 164X X X X Extracts X X X X X X X X Extracts X X X X ..... he goods and hence the respondent was liable to pay duty on the reprocessed goods. – Commissioner (Appeals) and Tribunal set aside the demand – Held that: - the processes carried out by the respondent on the duty paid finished goods which were received back by them being rejected would not amount to manufacture and hence no duty was payable by the respondent on the reprocessed goods. – decided in favor of assessee - 28 of 2006 - - - Dated:- 18-5-2010 - CORAM: HON'BLE MR. JUSTICE ASHUTOSH MOHUNTA. HON'BLE MR. JUSTICE MEHINDER SINGH SULLAR. Present: Mr. Sanjeev Kaushik, Sr.Standing Counsel For The Petitioner. Mr. M.P. Devnath, Advocate For The Respondent. ASHUTOSH MOHUNTA, J. The Commissioner of Central Excise Commis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... However, the adjudicating authority vide order Annexure P-1 confirmed the demand of central excise duty amounting to Rs.1,04,000/- against the noticee under Section 11A of the Central Excise Act alongwith interest due thereon. An equal amount of penalty was also imposed on the noticee under Rule 173Q of the Rules. Being aggrieved, the noticee filed an appeal before the Commissioner (Appeals) wherein it was contended that reprocessing of the rejected drugs does not amount to fresh manufacture and hence the notice was not liable to pay any duty. The Commissioner (Appeals) accepted the plea of the noticee and set aside the order passed by the adjudicating authority and held that the processes carried out by the noticee on the duty paid fini ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee indicates that the goods were already finished. In the show cause notice too there is no allegation that goods received under Rule 173H of Central Excise Rules, 1944 were not duty paid finished goods. Once the goods received under Rule 173H are admitted to be finished goods refining done by the processes mentioned in Section 2(f) of Central Excise Act, 1944 and chapter note 3(d) of Chapter 54 of Central Excise Tariff Act, 1985 would not amount to manufacture of new product. Demand not sustainable." In view of the above, the processes carried out by the respondent on the duty paid finished goods which were received back by them being rejected would not amount to manufacture and hence no duty was payable by the respondent on the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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