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TMI Blog2010 (11) TMI 812X X X X Extracts X X X X X X X X Extracts X X X X ..... 0/- has been imposed against Shri A.K. Srivastava, Sr. Manager (Distribution) of the appellants. 2. We have heard at length the ld. Advocates for the appellants and the Jt. CDR for the respondent. We have perused the written submissions filed on behalf of the parties, as well as other materials placed on record. 3. The appellants are engaged in the manufacture of Photocopier and are also engaged in trading of Digital Multifunctional Printers, Copiers and Photocopiers-cum-Printers, and Photo Receptors-cum-Printers. Pursuant to visit by the Preventive Wing personnel of the Central Excise Department, Meerut to the factory premises of the appellants on 17th August, 2005, certain documents were seized under a Panchnama. Simultaneously, the statements of Shri S.K. Gupta, Financial Controller, Shri Nitin Jagtap, Head Technical Support, Shri Arvind Kumar Srivastava, Sr. Manager (Distribution), Shri Anil Kumar Gupta, Dy. General Manager (Imports) and Shri Prabhat Kumar Gupta, General Manager (Planning and Technical) were recorded under Section 14 of the Central Excise Act, 1944. In the course of investigation and pursuant to the scrutiny of the said statements and documents, it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ware, RAM, Stabilizers, etc., as per the requirement and configuration given by the customers. On completion of kitting activities, the goods were dispatched to the customer's site, where they were installed. The kitting activity was an essential function to make the machine operational, and the modules and parts were not of the nature which could render the function independently which a complete machine could perform on being assembled with necessary modules and parts. 6. The Commissioner in the impugned order has in detail analyzed the activities which were carried out by the appellants and has held that the same amounted to manufacture under Section 2(f) of the said Act read with Note 6 of Section XVI of the Central Excise Tariff Act. 7. The ld. Advocate for the appellants while assailing the impugned order submitted that the authority below has considered the activity as manufacturing activity essentially on the basis of Note 6 to Section XVI of the Tariff Act. He submitted that the Copier-cum-Printer was complete in itself and was cleared in modular form merely for ease of transportation and also because the goods were imported in such modular form. According to l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , Hyderabad reported in 1999 (105) E.L.T. 263 (A.P.) and Narang Latex and Dispersions Pvt. Ltd. v. Commissioner of Central Excise, Mumbai reported in 2001 (134) E.L.T. 482 read with 2002 (139) E.L.T. A302 (S.C.). 9. It is his further contention that there is no evidence about manufacturing activity produced on record by the Department. He further submitted that mere installation of the machines does not amount to manufacture. According to ld. Advocate, it involves very simple process and, therefore, no manufacturing activity was done. As regards, the domestic parts, it is sought to be contended that the appellants used to procure some local goods such as pin-top software upgradable kits/RAM Stabilizers, packing material, stand for some selected models and paper. Sometimes customers desired stabilizers due to fluctuations in the electric voltage supply. Pin tops are nothing but adapter for power supply to meet the local conditions. Packing material was used for the sake of proper transportation bearing in mind the road conditions. The stands for various articles like coolers, refrigerators, TV Trolleys, etc., were supplied along with some models which were domestically procure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly of the machines as per the requirements of the customers. 13. Referring to the statement of Shri Nitin Jagtap, it was sought to be contended that he had clearly admitted that the machines in the imported condition could not be installed as various parts were required to be assembled depending upon the requirements of the customers. Referring to Note 6 of Section XVI, it was sought to be contended on behalf of the Department that the same would apply to the activities carried out in the nature of making a machine ready for its functioning by assembling the parts. Besides, reference to unfinished or incomplete article has to be understood qua the requirements of the customers. Admittedly imported goods were not supplied to the customers in the same form in which they were imported and unless and until the same had undergone the process of kitting. By application of Rule 2(a) of the Interpretation Rules read with Note 6 of Section XVI such activities are to be assessed as amounting to manufacture. Attention is drawn to the decision in the matter of Commissioner of Central Excise, Delhi-III v. BHP Engineers reported in 2000 (119) E.L.T. 599 and Shrike Construction Equipments P ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in 2001 (130) E.L.T. 219, it is sought to be contended that the appellants were fully aware of the requirement of law and therefore, it cannot be said that there was no suppression of fact. 18. In rejoinder, the ld. Advocate for the appellants has drawn our attention to the decision of the Bangalore Bench of the Tribunal in appellants' own case wherein similar activity carried out by the appellants at different unit has been held not amounting to manufacture. The decision was delivered on 9th November, 2009 in a Central Excise Appeal Numbers E/591, 592 & 596 of 2009 under Final Order Nos. 1331-1333/09 [2010 (252) E.L.T. 273 (Tribunal)]. In that regard, it has been contended on behalf of the Department that the decision does not disclose consideration of various points which are sought to be canvassed herein and particularly whether kitting and partial assembly can be considered as the process of manufacture and whether the final products were same as were imported were not dealt with by the Tribunal in the said case and the same is therefore distinguishable. 19. Considering the rival contentions canvassed in the matters, the following points arise for consideration : ( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assed. 22. While dealing with the point as to whether the word 'assembly' is proper for defining the act of putting together various parts/modules/accessories of machines imported and locally procured by the appellants, the Commissioner, after taking note of the defence of the appellants and all the materials placed before it, has observed that the whole process after the receipt of the goods by the appellants involved the activity of physical verification of the goods vis-a-vis invoices and the bills of entry, unpacking of the goods, visual inspection and checking of documentation, storage of goods in the area demarcated for imported goods in the warehouse at Rampur, kitting of the goods, dispatch of machines directly to customers or through their branches under the cover of invoices/stock transfer document and ultimate installation of machine at customers site. 23. As regards the concept of kitting is concerned, it has been held that the process of kitting in respect of imported parts/modules/accessories was admittedly done in the factory/warehouse premises of the appellants and some indigenous accessories like pin top, software, RAM, Stabilizers, stands for some mode ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts/modules/accessories required for completion of such machines. The same clearly disclosed utilisation of additional accessories/parts for completion of the manufacturing of the machines to make them to meet the requirements of customers on installation thereof. 24. On analysis of the process undertaken by the appellants in the name of 'kitting' it has been held by the Commissioner that the same consisted of fixing/assembling of modules/parts/accessories and other required softwares, various instalment kits, without being hazardous to the safety of machine during its transportation and only those parts which cannot be fixed into it for the reason of odd shape or safety during transportation were assembled at the customer's place. The major activity of assembling of parts/modules/accessories of machines was performed at the warehouse/factory premises at Rampur and only the part which would not be fixed into the main machine for the reasons of odd shape of such part or for safety during the transportation were assembled at the place of customers in the course of installation. It has been further held that the activity of assembling various parts modules and accessories was anc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ines. Thus, a completely new product with new name different character and use emerged on account of such activity. 26. Though the learned Advocate for the appellants has strenuously argued and tried to contend and also has submitted in the written submission that the main issue in the matter is whether the installation of the printer copier at the customers premises would amount to manufacture in terms of Section 2(f) of the said Act read with Note 6 of Section XVI of the Tariff Act, the gravaman of the story of the appellants is that the process of kitting of modules and parts along with the indigenously procured parts and accessories and on transformation of the product in disassembled form and installation of assembly thereof at the customers premises would not amount to manufacture either under Section 2(f) of the said Act or Rule 2(a) of the said Rules, read with Note 6 of Section XVI. 27. Though it is sought to be argued on behalf of the appellants that on importation of modules and parts of the machines they were merely installed at the premises of the customers along with indigenously procured parts and accessories and it involved no activity in the nature of m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... activity being completed, it was possible to do dekitting. There is a clear admission in that regard by Sh. A. K. Srivastava, Sr. Manager (Distribution). This clearly implies that kitting was a process of assembling including the process relating to alignment and testing, and it was possible to do de-assembling, rather it was done so in relation to the parts which were found difficult for transportation in the assembled form on account of either odd shape or for safety reason. It is, therefore, difficult to accept the contention that no assembling was done in relation to the products imported as well as procured indigenously. It is also further established that the kitting process was done in the factory or warehouse at Rampur. This is also revealed from the statements of the said persons. 28. The Apex Court in CCE, Delhi v. Insulation Electrical (P) Ltd. reported in 2008 (224) E.L.T. 512 (S.C.) while reiterating its earlier view in the matter of Pragati Silicons Pvt. Ltd. v. Commissioner of Central Excise, Delhi reported in 2007 (211) E.L.T. 534 (S.C.) held that there is difference between the 'parts' and 'accessories'. It was further held that a part is an essential compone ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rocess is a process of manufacture or not has to be determined having regard to the facts and circumstances of each case and having regard to the well known test laid down by the Hon'ble Supreme Court. In other words, transformation of a product to the extent it becomes commercially different commodity is sufficient to constitute the same to have been manufactured and, therefore, sufficient to attract the levy of excise duty. 32. In South Bihar Sugar Mills Ltd. v. Union of India reported in 1978 (2) E.L.T. J336 (S.C.) the Apex Court had held that the Central Excise Act charges duty on manufacture of goods. The word "manufacture" implies a change but every change in the raw material is not manufacture. There must be such a transformation that a new and different article must emerge having a distinct name, character or use. 33. The Bombay High Court in New Shakti Dye Works Pvt. Ltd. & Mahalakshmi Dyeing & Printing Works & Others v. UOI & Another reported in 1983 (14) E.L.T. 1736 (Bom.) while dealing with the question as to whether the petitioners therein who were carrying on the business of bleaching, dyeing, printing and finishing cotton fabrics were liable to pay the ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xistence or a new or different article having a distinct name, character or use results from particular process or processes, then such process or processes would amount to manufacture. 35. The Apex Court, therefore, in clear terms has ruled that in order to constitute manufacture, it is not necessary that one should absolutely make out a new thing. It is the transformation of an article into something else, provided that the something else should be a different commercial commodity having its distinct character, use and name and commercially known as such. No doubt, the question whether a particular process is a process of manufacture or not has to be determined having regards to the facts and circumstances of the each case as well as well known tests laid down by the Hon'ble Supreme Court. 36. Bearing in mind the above rulings, if we consider the facts of the matter in hand and apply thereto the law laid down under the said decisions, along with the provisions of Section 2(f) of the said Act and Note 6 of Section XVI of the Tariff Act, it would at once be clear that the activity of kitting which also involved assembling would constitute manufacture within the meaning ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ordings of this note that if a product which is incomplete or unfinished is completed or finished, the process for making it complete or finished will amount to manufacture". It was further held that the assessee were converting CKD kits into fax machine so that the components could be used as a fax machine. Only difference between the said case and that of the appellants case herein is that the appellants are converting the modules and parts imported, along with indigenous parts and accessories, into printer copiers instead of fax machines. 38. It is pertinent to note that it is not the case of the appellants that the modules or parts imported could themselves be used as complete machines either as copier or printer. It was only upon completion of process of kitting which comprised of assembly of the imported modules and parts along with indigenously procured parts and accessories that the machines become functional. In fact, in Xerox Modicorp decision, the Tribunal had also observed that "it is not the case of the appellants that the components imported by them can be used as fax machine without the process of assembly undertaken by them. Only the process undertaken by them ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me marketable products without affixation of nameplates and therefore it was an essential ingredient for completion of the process of manufacture. 41. In case of appellants, the product unless it had gone through the process of kitting, the same did not become a product which could perform the function expected to perform and, therefore, marketable to the customers. Being so, kitting, being one of the essential process for completion of the marketability aspect of the product, it was essential ingredient to complete the process of manufacture, as has been held by the Apex Court in Jay Engineering Work Ltd. 42. In Commissioner of Customs, Indore v. Hindustan Motors Ltd. reported in 2003 (156) E.L.T. 155 (Tri.- Del.), the Tribunal was dealing with the matter wherein the assessee had imported components of diesel/petrol engine from their collaborator and procured some parts locally. The assessee had imported components sets of the engines in unassembled condition which on assembly would have the essential character of the complete or finished article. No doubt the assessee were required to procure some local components to complete the assembly of engine. Having noted these ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t in issue was approved by the apex Court. Further, the Authority for Advance Rulings, New Delhi, In Re : Bayerische Motoren Werke Aktiengesellschaft reported in 2006 (193) E.L.T. 138 (A.A.R.) had held that in the light of Rule 2(a) of the Interpretative Rules, the term 'motor car' would include incomplete or unfinished motor cars provided they had essential character of the complete or finished motor cars inasmuch as that the cars, imported as CKD units without seats, have essential character of complete or finished motor cars. In other words, absence of seats would not cause obstacle for classifying the motor cars has having essential character of complete or finished motor cars and to refer to them as complete and finished article even when presented in unassembled or disassembled form. 44. In Narne Tulaman Manufacturers case the question for consideration before the Apex Court was that whether the assessee had manufactured weighbridge and as such was liable to duty under the said Act. It was held that if the end product is a separate product which comes into being as a result of an endeavour and activity of the assessee, then the appellant must be held to have manufacture ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he case held that in terms of the Note, the conversion of an incomplete or unfinished article into complete or finished article alone can amount to manufacture and considering the fact that the Aquaguard was already complete in itself, there was no question of applicability of said Note 6. The above finding was arrived at by the Larger Bench taking into consideration the facts of the case and the specific defence which was raised by the assessee therein that the water filter and purifier purchase from APIC was complete in itself and bought out items which were placed in the same carton were its accessories and not integral part of water filter and purifier. After going through Note 6 of Section XVI as well as the decision of the Tribunal in A.P. Industrial Components Ltd. v. Collector reported in 1993 (68) E.L.T. 357 and the dismissal of the appeal therefrom by the Apex Court reported in A.P. Industrial Components Ltd. v. Collector reported in 2000 (115) E.L.T. 33, it was noted that conversion of a incomplete or unfinished into complete or finished article can amount to manufacture. If the acquaguard was complete in itself then the said Note 6 would not be attracted. It was finally ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... td., Mumbai, the dispute was in relation to the Acquaguard with reference to Note 6 of Section XVI and the issue was whether the activity of the assessee amounted to manufacture within the meaning of the said expression under the said Note. Taking into consideration the facts of the case, it was held the Acquaguard itself was not incomplete and, therefore, the Note 6 was not attracted. The facts of the case revealed that the assessee marketed the product known as Acquaguard. The product consisted of two components. The first component consisted of water filter purifier. It comprised of a chamber containing articles of activated carbon and another chamber housed and ultraviolate lamp whereas third chamber contained electronic controls and a spout for releasing water. The water first passed through the chamber contained the carbon where it was filtered to remove solid waste to deodorise item and to remove unwanted colours. It was then taken to the chamber containing ultraviolet lamp radiation and the lamp destroyed microscopic bacteria and viruses present. The water was then ready for removal. The unit was manufactured by wholly owned subsidiary of M/s. AP Industrial Company Ltd. who ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d packing them amounts to manufacture. Taking into consideration the facts of the case, it was observed that the identity of the items placed in kit is not changed. They are known in the market as such. There is no transformation in the articles which are placed in the kit. They are marketable as such. Further, no process is also involved except that all the articles are put together in one box. It was observed that by placing all those articles in one kit, the kit had a distinct name known as "cable jointing kit". However, there was no change in the character and use of the articles placed in the kit. In other words, except the test that articles which were placed in the kit had a distinct name, other tests to qualify the activity to be the process of manufacture were not satisfied. 54. In Narang Latex & Dispersions case, it was held by the Tribunal that the activity of buying plastic and glass bottles and affixation of manufactured rubber nipples thereon and packing them in a printed corrugated boxes do not amount to an activity of manufacture under Section 2(f) of the said Act. The Apex Court had dismissed the appeal against the said order. 55. In Nugas Technologies ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s like assembling, which result in bringing out a new product, which is commercially a different product from what is imported, would be sufficient. And the said expression does not indicate in any manner that the substantial amount of components must also be manufactured. 58. In the case of Atlas Laminate Industries v. Union of India reported in 1991 (51) E.L.T. 251, the Gujarat High Court after taking into consideration various decisions of the Apex Court and while dealing with the issue as to whether in bonding of kraft papers with bitumen to convert it into bituminized water-proof paper amounts to manufacture or not, answered the same in affirmative while observing that the kraft paper is not water proof paper, while bituminized water-proof paper has the characteristic being water-proof paper. The kraft paper looses its identity after the manufacturing process is undergone. The price of the end product is also higher. The kraft paper is very thin. The very idea of bonding kraft papers together is to see that the thickness of the paper increases so that it can be used for packing purpose. Undoubtedly for certain articles kraft paper can also be used tor packing purpose but ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e contract was entered into by the assessees and the buyers. The appellants had filed price list with the Revenue in respect of each of the purchase orders. The cranes were cleared under gate passes on payment of duty. The documents produced by the assessees were clearly showing that the orders were complete in respect of design manufacture and supply of complete crane and in fact, the assessees had cleared complete cranes. However, cranes being bulky machines, they were removed from the factory in unassembled or disassembled condition. In those circumstances, it was held that the assessees had in fact cleared complete cranes and not merely their parts. 62. The records undoubtedly establish that the appellants were importers and traders in certain machines including Multi functional printers, Copiers and Photocopiers-cum-printers etc. They were engaged in importation of different modules/parts of such machines from various manufacturing units of the appellants in various countries. Some of the machines imported as such were sold in the same form whereas others were modified to suite to the requirements of the customers and in some cases even parts and accessories were sold. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manufactured locally at Mumbai. At their workshop-cum-godown, certain checks for quality were conducted by filling the gas and the brand name "Fedders Lloyd" was affixed on the cooling units and, thereafter, those units were cleared along with pipe kits, electrical cord, remote control, etc., to various customers and the same were installed by the assessee's sister concern M/s. Air Serco Pvt. Ltd. on behalf of the said assessee. Considering these facts, the apex Court held that the same disclose that the complete split air-conditioner came into existence at the workshop in Mumbai. The contention sought to be advanced on behalf of the assessee that no change in the name, character and use of the product or transformation of the raw material into finished product came into existence at workship in Mumbai was rejected. It was observed that the cooling units or condensing units by themselves cannot function as air-conditioner. They have to be joined together with pipe kits, electrical cord and remote control, etc. to function as a complete air-conditioner unit. This process was carried at the factory-cum-godown of the assessee at Kunjurmarg, Mumbai. Taking into consideration the defin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duct used three types of suffixes. They were K.G., A.G. and M.G. It has been clarified by Shri Anil Kumar Gupta, Deputy General Manager of the appellants that A.G. stood for accessories, M.G. disclosed complete machine and K.G. referred to modules and kits. 70. It is an undisputed fact that whenever complete machines were imported as per the requirement of the customers they were supplied and installed by the appellants without undergoing any kitting process. However, in cases where the imported materials required certain variation or addition or even subtraction to meet the requirements of the customer, the necessary process in that regard was undertaken in the factory or the warehouse of the appellants which was called kitting. At the same time, Deputy General Manager has clearly stated in his statement that the process of kitting was required to complete the machine as per the configuration of machine required by the customer. Indeed, as rightly sought to be contended on behalf of the department, one fails to understand if the imported goods were fully manufactured machines what was the need of undergoing kitting process to make the machine complete as per the configuratio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d with Note 6 of Section XVI, the machine supplied to the customer by the appellants had to be classified under appropriate chapter and only because of convenience, as claimed by the appellants, such goods were not to be transported after necessary configuration and attaching each and every part together that would not mean that what was cleared from the warehouse or factory was not manufactured product. The contention sought to be raised in this regard on behalf of the department indeed cannot be found fault with. The activity which was carried out in the form of kitting was not mere modification to the already manufactured and existing product. It was not merely bringing together various parts of the machine, assembling of which did not require skillful labour. The activity was also not in the form of mere change of accessories like plugs or cables etc. And the kitting process was being done in the factory or warehouse which was situated within the territorial jurisdiction of the Commissionerate in question. 73. Though, it has been strenuously argued that no activity was being carried out by the appellants in their premises at Rampur which would amount to manufacture, the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rence in weight with reference to the modules and components imported by the appellants and in that of the machine on its completion, after undergoing the process of assembly is also of vital importance while deciding the issue under consideration. It was sought to be contended that the additional weight was on account of accessories annexed to the machine depending upon the requirement of the customers. However, apart from mere argument in this regard, the appellants have not been able to point out any material on record to substantiate the said arguments. At the same time the factum of difference in weight is admitted. Admittedly, the weight of the machine after undergoing the process of assembly was more then that of modules and components imported for the purpose of assembling a machine. This aspect also lends support to the contentions sought to be canvassed on behalf of the department. 77. It is also pertinent to note that the Commissioner on detailed analysis of materials on record has arrived at various findings of facts. Neither in the memo of appeal nor in the course of the oral submissions and also in the written submissions, nothing is pointed out to us which woul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tivities in respect of such product had undergone in their factory or warehouse. 81. There is also a finding in the said case that "the components received in sets were cleared as such; no conversion of an incomplete machine into complete machine took place in the warehouse of the appellants. Assembly of components into photocopiers took place at the premises of the respective buyers. In view of this factual position the arguments advanced by the Revenue are totally irrelevant". That is not the case in the matter in hand. The records disclose that the various modules and parts imported by the appellants underwent required changes in the course of the assembling of the product to suite to the needs of the customers. In other words, admittedly, the machine imported were not supplied to the customers without having undergone required changes in the warehouse, and these facts have been clearly admitted by the executives of the appellants in their statements. Being so, the case in hand is clearly distinguishable from the case before the Bangalore Bench of the CESTAT. 82. In fact, it is also evident from the order passed by the Bangalore Bench itself and particularly in para ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bishing activities undertaken by the appellants in respect of their product 'XMart' in their Jolly Godown did not amount to manufacture. 84. It is also sought to be contended that the appellants having acted under bona fide belief that no duty was payable on the subject goods on the ground that there was no activity amounting to manufacture, there was no justification for invocation of extended period of limitation. As regards the contention about absence of manufacturing activities, as already held above the activities carried out by the appellants in the premises at Rampur clearly disclosed that the same were in the nature of manufacturing activity. Being so, there was no occasion for the appellants to harbour any belief that such activity did not amount to manufacture. In fact, the situation was made clear in their own case and the decision in Xerox Modicorp Limited was very clear in that regard. In spite of the above fact, the relevant information was suppressed from the department and they misdeclared their activity as trading activity and thereby wilfully indulged in contravention of the provisions of the said Act and the Rules made thereunder with intent to evade the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o series of activities which are offendable or the violation of the provisions of law arises within the jurisdiction of different investigating officers or adjudicating officers, every such officer will have jurisdiction to investigate and or adjudicate upon such offence or violation arising in all such territories. Merely because installation was carried out beyond territorial jurisdiction of Meerut Commissionerate once it is established that the major activity of manufacturing in relation to such machines was carried out at Rampur which lies within the jurisdiction of Meerut Commissionerate, it cannot be said that Commissioner at Meerut had no jurisdiction to investigate and adjudicate upon the matter. 89. In Raletronics Limited case the Hon'ble Karnataka High Court was dealing with the question as to whether the Collector could have collected materials by getting investigations conducted elsewhere which have a bearing on the alleged tax evasion at Bangalore. It was observed by the Hon'ble High Court that the statement that the jurisdiction is territorial-cum-functional has to be understood as a jurisdiction related to the cause of action. The power of investigation and col ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer. By virtue of Section 37B the Board can issue orders, instructions or directions to the Central Excise Officers and such Officers must follow such orders, instructions or directions of the Board. However, these directions can only be for the purpose of uniformity in the classification of excisable goods or with respect to levy of duties of excise on such goods. It is thus clear that the Board has no power to issue instructions or orders contrary to the provisions of the Act or in derogation of the provisions of the Act. The Board can only issue such direction as is necessary for the purpose of and in furtherance of the provisions of the Act. The instructions issued by the Board have to be within the four corners of the Act. If, therefore, the Act vests in the Central Excise Officers jurisdiction to issue show cause notices and to adjudicate, the Board has no power lo cut down that jurisdiction. However, for the purposes of better administration of levy and collection of duty and for purpose of classification of goods the Board may issue directions allocating certain types of works to certain Officers or classes of Officers. The Circulars relied upon are, therefore, nothing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uty. 94. The appellants though in the process of oral argument or in written arguments have not referred to certain reported decisions, there is reference to such decisions in the memo of appeal and probably it would be appropriate to consider those decisions. 95. In Commissioner of Central Excise & Customs v. Pilot Plastics reported in 2009 (234) E.L.T. 471 (Tri. - Ahmd.) = 2010 (19) S.T.R. 294 (Tribunal), the Tribunal had held that activity of putting various parts of water filter in a box and affixing brand name 'anchor' does not amount to manufacture. Apparently, the decision was delivered on the basis of the Tribunal's earlier decision in Eureka Forbes (supra) and Dalmia Industries Ltd. v. Commissioner reported in 1999 (112) E.L.T. 305 (Tribunal) which essentially related to the case of water filter purifier. 96. In Commissioner of Central Excise, New Delhi-I v. S.R. Tissues Pvt. Ltd. reported in 2005 (186) E.L.T. 385 (S.C.) the Apex Court was dealing with the issue as to whether the process of unbinding, cutting and slitting to sizes of jumbo rolls of tissue paper would amount to manufacture on first principles or under Section 2(f) of the said Act and the s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the nature, characteristics and function of each of such components. 97. In REPL Engineering Ltd. v. Commissioner of Central Excise, Mumbai-II reported in 2002 (147) E.L.T. 156 (Tri.-Mumbai), the Tribunal had held that putting together different duty paid items in a kit does not amount to manufacture. As already seen above, it is not a mere case of putting together different components for items. Being so, this decision is absolutely not applicable to the facts of the case. 98. Similar is the case in relation to Dalmia Industries Limited v. Commissioner of C. Ex., Jaipur reported in 1999 (112) E.L.T. 305 (Tribunal). Therein it was held that buying various articles and selling them in a combined pack under a brand name does not amount to manufacture. 99. Taking into consideration the facts and circumstances of the case and applying the law laid down as discussed above, we find no infirmity in the impugned order. 100. The fallout of the above discussion is that as far as Point No. 1 is concerned, the same is required to be answered in affirmative and is accordingly answered. As regards the Point No. 2, it is answered in negative and it is held that the Com ..... X X X X Extracts X X X X X X X X Extracts X X X X
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