9911796707
TMI Blog2006 (5) TMI 399X X X X Extracts X X X X X X X X Extracts X X X X ..... r Lamp Shade Company (Factory Shop). A separate penalty of Rs. 2,00,000/-, which was imposed on Mrs. Veena Kapoor, Proprietor of the firm, was dropped by the Commissioner (Appeals). The appellant No. 1 (M/s. Kapoor Lamp Shade Company) in the company is, admittedly, a sole proprietary concern of Mrs. Veena Kapoor, appellant No. 2. According to the Revenue, the appellants were engaged in the manufacture of electrical decorative lamps, table lamps and chandeliers, etc. falling under Chapter Heading No. 94.04 under brand name Kapoor Lamp Shade Co. and logo KLS On 18-1-2000, the excise officers on search of the godown of the appellant found that they were clearing the goods without payment of duty. According to the Revenue, they were producing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ady and fit to be used as such, alone can fall within the purview of Item No. 35 of the Central Excise Tariff Act, would be a too narrow and literal interpretation of the term cycle . Keeping in view the prevalent practice, where the manufacturer despatched the cycles is the wholesale dealers or retailers in CKD condition, in that case, as noted in paragraph 3 of the judgment, the cycle manufacturers had represented to the Government that the term cycle in Item No. 35 would include cycles already cleared in CKD condition. The department, however, issued trade notice stating that, the Trade is advised that supplies of cycles in unassembled condition was basically supplies of different parts of a cycle and so, except for rims and free whe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bad [1999 (105) E.L.T. 263 (Andhra Pradesh)] pointing out from paragraphs 9, 10, 12 and 13 of the judgment wherein it was held that placing different articles in the kit did not amount to manufacture. The Court came to a finding that, the identity of the items placed would not change and, therefore, the articles placed in the kit were marketable as such. No process was involved except that all the articles were put together in one box. It was observed that even though by placing them in one kit, the kit has a distinct name known as Cable Jointing Kit but there was no change in the character and use of the articles placed in the kit. 3.1 The decision of this Tribunal in Bajaj Auto Ltd. v. Collector of Central Excise, Aurangabad reported ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... igation had revealed that the appellant had purchased various raw materials/components of electric lamps such as parts/brass parts, electrical wires, plugs and sockets, glass shades, pacing materials, etc. from various sources. They purchase base and the other metal parts, for assembling the units. Various parties that had supplied different components/parts did not supply the units in CKD condition but numerous parties supplied different parts for assembling the units. Therefore, prima facie, it cannot be said that there was no manufacturing process involved. The decision in T.S. Cycles of India (supra) can not assist the appellant for the simple reason that in that case the cycles were sent in CKD condition. Therefore, the manufacturing p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hed is correct, then this was a case of suggestion false. However, no such intimation was given by the present appellant about the nature of the activities, which were to be carried out and no particulars about the assembling of the electrical decorative/table lamps into godown were furnished to the lower authorities until the activity was detected by the Revenue. Therefore, prima facie, the extended period of limitation appears to have been correctly invoked. 7. On the aspect of financial hardships, the learned Counsel drew our attention to the statement of income-tax along with a copy of Saral Return in which loss incurred by the appellant of Rs. 1,41,328/- during the assessment year 2004-2005 is shown. However, it would appear from t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
