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TMI Blog2000 (9) TMI 750X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of duty under the guise of repaired goods. 467 nos. of electric fans were confiscated as these were found in excess to their statutory record and the appellants were given option to redeem these fans on payment of redemption fine of Rs. 60,000/-. On demand of Rs. 56,781.01 was confirmed on the inputs found short in the factory. A penalty of Rs. 5 lakh was imposed on M/s. Metro Appliances Ltd. and Rs. one lakh each on Shri R. Chhabra, M.D. and Shri A.N. Passi, G.M. was also imposed. 3. Ld. Counsel, appearing on behalf of the appellants, fairly submits that the appellants were not contesting the duty demand of Rs. 56,781.01. 4. In respect of duty on 39490 nos. of electric fans, ld. Counsel submits that electric fans were earlier cleare ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f repair and new plate have necessarily to be fixed on the fan. For the repair of fan, the fan is to be dismentled and after removing the defects, it was again to be re-assembled. He submits that the Tribunal in the case of Metro Tyres Ltd. v. C.C.E. reported in 1996 (84) E.L.T. 485 held that repair or reconditioning of old and defective electric fans by replacing parts, rewinding of motor, refixing of new/old number plates and selling of such repaired/reconditioned fans with new guarantee card does not amount to manufacture as it does not result production of a new article. He, therefore, submits that demand in this respect is not sustainable. 5. In respect of confiscation of 467 fans, ld. Counsel submits that the Commissioner has wrongl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 record and the contention of the appellants is that these fans were cleared from finishing room on 14-8-1995. He submits that if these fans were cleared on 14-8-1995 from the finishing room, then these were to be entered in their R.G. 1 record on the same day whereas on 16-8-1995, these were found in excess of the balance in R.G. 1 record. He submits that the explanation that these were cleared from finishing room, is only after thought. He, therefore, submits that the appeal be dismissed. Heard both sides. 7. In this case, the duty of Rs. 25,92,335.75 was confirmed on 39490 numbers of electric fans. The contention of the revenue is that the appellants were clearing new fans without payment of duty under the guise to repair fans. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of such repaired fans with new guarantee card, does not amount to manufacture. In view of the above decision of the Tribunal and in view of the fact that the appellants were clearing the goods after following the procedure laid down under Rule 173H of the Central Excise Rules, the demand of Rs. 25,92,335.75 is not sustainable. 8. In respect of confiscation of 467 electric fans, the contention of the appellants is that these fans were cleared from the finishing room on 14-8-1995 and there was shortage of equal number of fans in the finishing room. If the shortage in the finishing room is taken into consideration, then there is no excess in the BSR. The electric fans were found in excess on 16-8-1995 in the BSR whereas the contention of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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