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TMI Blog2013 (8) TMI 841X X X X Extracts X X X X X X X X Extracts X X X X ..... ss amounts to manufacture of the finished product and it also amounts to value addition to the semi-finished diodes - There were no contravention of provisions of Rules 51A, 57G, 57F(1), 173(1) and 173G of Central Excise Rules, 1944. The diodes seized by the department were per se not marketable and respondent after processing those semi-finished diodes used to clear the same on payment of excise duty - it was evident that the adjudicating authority had looked into the process to which imported semi-finished diodes were subjected to before marketing the same came to the conclusion that the aforesaid process amount to manufacture as defined under Section 2(f) of Central Excise Act, 1944 - Only fact which was established from the test repo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 31-10-1996. During the course of physical verification, a stock of 90,000 pieces of imported Diodes Cell Type un-marked (besides other inputs), which appeared to be complete marketable diodes, was found. The respondent was asked to explain as to why he had not accounted to those 90,000 pieces of diodes cell type un-marked in their RG-1 Register. The respondent explained that the goods in question were semi-finished goods of diodes category regarding which declaration had already been filed by them in terms of Rule 57G of Central Excise Rules, 1944 in order to avail modvat credit thereon and for the reason the aforesaid semi-finished diodes were not liable to be accounted for in RG-1 stock register. 3. The Department was of the vie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... report, the diodes action was observed in the device VF:0.38V (approx.) which confirms that the diodes in question were not inputs for manufacture of finished product but the finished goods. In view of the above, it is submitted that the impugned order is flawed and is liable to be set aside. 5. Learned Counsel for the respondent on the other hand has contended that the respondent has rightly availed Cenvat credit as the diodes imported by the respondent were unfinished product which were subjected to process of electroplating, testing, marking, taping, quality control and packing to make them marketable. It is further submitted that the test report of ERTL (North), NSI Laboratory relied upon by the Department is of no avail to the appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... used without further treatment of any sort and also as to whether the samples were finished diodes in itself used in relation to manufacture of final product. In view of the above, the adjudicating authority did not find contravention of provisions of Rules 51A, 57G, 57F(1), 173(1) and 173G of Central Excise Rules, 1944 and dropped the proceedings. Commissioner (Appeals) vide impugned order did not find fault with the order-in-original and dismissed the appeal. 8. The respondent has pleaded that the diodes seized by the department were per se not marketable and respondent after processing those semi-finished diodes used to clear the same on payment of excise duty. This plea is not disputed by the appellant. From the order-in-original, it ..... X X X X Extracts X X X X X X X X Extracts X X X X
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