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TMI Blog1990 (7) TMI 210X X X X Extracts X X X X X X X X Extracts X X X X ..... r further use in the manufacture of recorded cassette tapes within their factory for the period from 5-3-1983 to 9-7-1983 and rejecting the request for grant of proforma credit for the purpose of adjustment in RG-23, Part II. 3. The facts of the case are as follows :- The appellants manufacture recorded video cassette tapes for which they first import video magnetic tapes in Pancake form falling under T.I. 59(5) of the erstwhile Central Excise Tariff and plastic covers falling under T.I. 68. The assembly of the two results in formation of a blank video cassette tape falling under T.I. 59(5). Subsequently they are used for recording video programs and duty is collected under T.I. 59(5) as T.V. image and sound recording media falling unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ithout tapes were also assessable to duty as video magnetic tapes imported in unassembled condition under Heading 92.01. The demand was confirmed by the Assistant Collector and was upheld by the lower appellate authority, rejecting the appellants contention that Video Cassette tape is only a cover made out of plastic and assessable as articles made of plastics in terms of Chapter Note 2 to Chapter 92 which lays down that cases, boxes and similar containers imported with articles of that Chapter are to be classified with such articles if they are of a kind normally sold therewith and such items imported separately are to be classified under the appropriate headings. 5. The issues for consideration in these appeals are :- (1) whether ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... V of the Import Policy for April 1981 - March 1982. According to the advice received and according to the additional list that was attached to the licence, the Appellants had to import their requirements of Video Cassette Tapes in a dis-assembled form i.e. Video Magnetic Tape as one constituent and the Video Cassette without tape being the other constituent respectively, falling under Entry 580(35) and 580 (36) in Appendix V of the Import Policy April 1981 - March 1982. As the appellants were not engaged in the manufacture of Video Cassette Tapes in pursuance of the licensing policy according to which the additional list attached to their licence, required import of Video Cassette Tapes in two constituents in dis-assembled form, the appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... istinction is well brought about in a passage thus quoted in permanent Edition of Words and Phrases Vol. 26 from an American Judgment. The passage runs thus : Manufacture implies a change but every change is not manufacture and yet every change of an article is the result of treatment, labour and manipulation. But something more is necessary and there must be transformation, a new and different article must emerge having a distinctive name, character or use. 9A. Our attention has been drawn by the appellants counsel to the decision of the Madras High Court in the case of T.I. Cycles of India v. UOI, reported in 1983 E.L.T. 681 wherein it was held that assembling of cycle parts does not amount to manufacture as envisaged by Section 2( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deo magnetic tape with plastic covers does not amount to manufacture and the appellants are therefore entitled to succeed in appeal No. E/2450/84-D. 12. Having held in favour of the appellants on the question of manufacture, it is not necessary for us to go into the question of eligibility for proforma credit under Rule 56A. However, we observe that, as per the calculations of the appellants the duty liability towards assembled unrecorded video cassettes would be totally covered by the available credit. The details of payment of duty for the period March 1983 to 8th July 1983. (Notification 187/83 was issued on 9-7-1983 which notification exempted unrecorded video cassettes, issued for recording within the premises from payment of duty) a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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