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TMI Blog2014 (3) TMI 83X X X X Extracts X X X X X X X X Extracts X X X X ..... e manufacturers of Populated Printed Circuit Board (PPCB). The issue involved in this case is as to whether the process of stuffing, soldering of components carried out by the applicants on the PPCBs supplied by the customers of the applicant on job work basis would amount to manufacture under Section 2(f) of the Central Excise Act, 1944. 3. The learned advocate submits that they are rendering two types of activities. In the case, where they have received the PCBs from the customers or the markets, they use the various components such as ICs, resistors, capacitors, diodes, connectors, circuits, etc., on their own and they cleared the PPCB on payment of duty. In other case, they are receiving the PCBs and raw material/components supplied by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated the process of manufacture of both the items which are reproduced below: As regards the manufacturing facility and the process of manufacture in our DTA unit, I wish to state that the DTA unit has the manual assembly line with around 45 technicians and also a mini reflow machine which can cater to the small quantity requirements of around 50 boards. The technicians will manually stuff and solder the electronic components such as ICs, resistors, capacitors, diodes, connectors, etc., to the printed circuit board as per the requirement of the customers. The above activity of stuffing & soldering will convert the bare PCB to Populated Printed Circuit Board (PPCB). The above PPCBs are classified under Chapter Sub Headin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onents and bill them as a product and charge the excise duty as applicable under tariff heading 8473 3030. The product value for the purpose of payment of excise duty includes the cost of PCB, components and our assembly charges which includes profit margin. I wish to confirm that we are availing cenvat paid on inputs as credit and using the same for payment of duty on the goods cleared to the OE manufacturers. You have asked me, when the process of manufacture of both the above streams of final products are one and the same and the final product is PPCB and when you yourself are paying duty on one stream of the products, please given the reasons for not paying duty on the other stream especially when the said finished products are not cov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pplicant paid service tax. The main contention of the applicant is that they have paid service tax and therefore demand of central excise duty on the same process cannot be sustained. We are unable to accept this submission. Prima facie, we find that both the processes are virtually similar. After considering the submissions of the learned advocate that they have already paid service tax of about Rs.68 lakhs and it appears from the show-cause notice that the value of the materials could not be ascertained by both the parties. The learned advocate also submitted that they are eligible for CENVAT credit. It is also submitted that part of demand is beyond the normal period. 5.2 We direct the applicant to deposit a sum of Rs.1,00,00,000/- (Rup ..... X X X X Extracts X X X X X X X X Extracts X X X X
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