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TMI Blog2011 (11) TMI 556X X X X Extracts X X X X X X X X Extracts X X X X ..... authority while confirming the demand held that it can be safely concluded that the activities carried out by any unit for complying with the requirements of other laws would not amount to manufacture, unless the activities independently answer to the criterion set forth by the Courts of law in interpretation and expansion of the definition and the word "manufacture" given in the Central Excise Act. 4. The contention of the applicants is that the applicants are importing chassis and paying appropriate countervailing duty. The applicants were availing credit of CVD paid on the chassis and undertakes certain activities such as fitting right hand outside rear view mirror and right hand turning signal and head light etc. In addition to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the company is under loss. 7. The Revenue relied upon the findings of the adjudicating authority to submit that the activities undertaken by the applicants cannot be treated as manufacture of motor vehicles. Even the activities just fitting certain items on the fully built motor vehicle or on chassis cannot be considered incidental or ancillary to the manufacture of new product. The Revenue also submitted that the applicants had no plant or machinery in their premises. The applicants are simply importing the chassis of the motor vehicle and supplied to the various job workers without undertaking any process incidental or ancillary to the manufacture. Therefore, the applicants are not entitled to the credit. 8. We find that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... According to the dictionary, the term 'manufacture' means a process which results in an alteration or change in the goods which are subjected to the process of manufacturing leading to the production of a commercially new article. In determining what constitutes 'manufacture' no hard and fast rule can be applied and each case must be decided on its own facts having regard to the context in which the term is used in the provision under consideration. 11. Manufacture implies a change but every change is not manufacture, yet every change of an article is the result of treatment, labour and manipulation. Naturally, manufacture is the end-result of one or more processes through which the original commodities are made to pass. The nature an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... brassieres is incidental or ancillary to their manufacture since the said process was intended to give a finishing touch in order to render them marketable. 10. In view of above decision, prima facie, applicant has a case for waiver of dues. 11. Further we find the Revenue wants to deny the credit of Central Excise duty in respect of chassis imported by the applicants on the ground that the process undertaken by the applicants does not amount to manufacture. As the applicants have paid the duty by reversal of the credit at the time of clearance of motor vehicles, prima facie, we find that the applicants have strong case in their favour. Therefore, pre-deposit of duty, interest and penalty is waived and recovery thereof is staye ..... X X X X Extracts X X X X X X X X Extracts X X X X
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