9911796707
TMI Blog1999 (1) TMI 382X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs. 50,000/- has been imposed on Shri G.V. Prasath, Director thereof. A further penalty of Rs. 50,000/-has been imposed on Shri R. Balakrishnan, General Manager thereof. 2. The matter concerns the alleged manufacture of Computer systems by M/s. Integrated Data Systems Ltd., as contained in the show cause notice etc dated 10-7-95. The Department alleges that what was purchased by the appellants was merely sub-assemblies of Computer system and these were then assembled into computer system and supplied to Customers. As against this, the appellants urge that they merely indulged in trading activities inasmuch as that they purchased Computer systems and they may have added some peripherals and software to it. But this activity did not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d assembling the peripherals and components along with the computers to supply computer systems. However, the said order is silent on these claims backed by these evidences. Learned Advocate also submits that when the impugned Order-in-Original was passed, the Adjudicating authority did not have the benefit of the case law of O.R.G Systems supra. Under these circumstances, the Order-in-Original impugned has erroneously concluded that their activity amounted to manufacture of computers. 5. Heard Shri S. Kannan, learned JDR who reiterates the Order-in-Original and submits that what was sold by the appellants was complete Computer systems as has been admitted by the customers. He further submits that the statement of the General Manager ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... merely added peripherals and certain softwares and supplied the same to computers, there is no invoice by invoice examination of this submission in the order. (b) Whereas the appellants had even at the original adjudicating stage submitted that they had purchased complete Computer systems and had laid evidence in the form of Invoices which even showed payment of Excise duty thereof (one such specimen having already been noted above), there is no discussion in the said order to how the further activities undertaken by the appellants still amounted to manufacture of a computer system which was then supplied to the customers. (c) The main tenure of the order impugned is that since complete computer systems was supplied to the cust ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d sale of hundreds of computers involved in the Show cause notice. Therefore, the only option available is to set aside the order impugned and to remand the case for de novo consideration to the learned Original Adjudicating authority with the directions that firstly, he shall re-evaluate all the evidences on record which the appellants have submitted towards their claim that they have bought out computer systems and merely added peripherals and software which does not amount to manufacture to it, instead amounts to trading; and secondly, while appreciating the said evidences and claim of the appellants that they have only engaged in trading activity, the learned Original Adjudicating authority shall also keep in view the Hon'ble Apex Court ..... X X X X Extracts X X X X X X X X Extracts X X X X
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