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TMI Blog2014 (3) TMI 830X X X X Extracts X X X X X X X X Extracts X X X X ..... annot be made the basis for holding that the activity amounts to manufacture. The duty paid cleared watches were received back by the appellants and after undertaking some process on the same, wrist watches were cleared from the factory. No new product having a different name, use and character comes into existence. Wrist watches remains wrist watches in spite of dial of the watch having been embossed with the customers logo - activity undertaken by the appellant does not amount to manufacture. As such, confirmation of demand of duty against them on the said ground is not sustainable - Decided in favour of assessee. - E/224/2005 - Final Order No. A/387/2012-EX(BR)(PB) - Dated:- 12-3-2012 - Ms. Archana Wadhwa and Shri Rakesh Kumar, JJ. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that the provisions of Rule 173H are available to them, which stand duly followed. 4. However, the above contention of the appellant was not accepted by the original adjudicating authority as also by Commissioner (Appeals). The appellate authority however, set aside the penalty imposed upon the applicant but confirmed the demand of duty. Hence, the present appeal. 5. After hearing both the sides and after going through the impugned order, we find that the issue required to be addressed by us is as to whether reprinting of dial and change of strap on the duty paid watches is a repair activity or the same amounts to manufacture of a new wrist watches so as to attract duty liability again. The reasons adopted by Commissioner (Appeals) f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tal or ancillary to the completion of manufactured product. Re-assembly in my opinion is incidental and ancillary to manufacture. 6. As is seen from the above, there is no denial of fact that apart from putting their customers logo on the dial and change of strap, no other process is undertaken on the said wrist watches. The appellate authority has held that there is intermixing of various other parts and a particular part which was originally with a particular wrist watch may find its place in another wrist watch. However, we find that the above cannot be made the basis for holding that the activity amounts to manufacture. The duty paid cleared watches were received back by the appellants and after undertaking some process on the same, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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