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TMI Blog2015 (2) TMI 465X X X X Extracts X X X X X X X X Extracts X X X X ..... e case, in brief, are that the applicants are registered with the central excise department as Deemed Manufacturer of spare parts classifiable under Chapter Heading 8708 of the First Schedule to the Central Excise Tariff Act, 1985. The applicants are procuring their inputs from three different sources. The spare parts are received from their warehouses situated at Mumbai, Kolkata, Greater Noida and Bhiwadi on stock transfer basis. Further, they are also importing automobile spare parts. They are also purchasing spare parts from vendors in bulk quantity. They are undertaking the activity of packing or repacking, labeling or relabeling, inspection etc. The applicants availed CENVAT credit on the spare parts and cleared the goods on payment of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d amount to manufacture. 4.1 It is submitted that in the present case, the processes undertaken by the applicant would cover within the definition of Section 2(f) of the Central Excise Act, 1944 and therefore there is no reason to deny the CENVAT credit. 4.2 It is further contended that the applicant availed CENVAT credit and paid the duty on the final product and there is no reason to deny the CENVAT credit. It is further submitted that credit taken is less than or equal to the duty paid on the finished goods. He submits that the adjudicating authority proceeded on the basis of various case laws which are prior to amendment to Section 2(f) with effect from 1.3.2003. 5. On the other hand, the learned Authorized Representative for Revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d. 2012 (285) ELT 449 (AAR) wherein it has been held that value addition is a relevant condition for activity to be treated as manufacture. 6. After hearing both sides and on perusal of the records, we find that the issue involved in this case is whether the activity of inspection, labelling, affixing of stickers or re-labelling amounts to manufacture or not and whether the applicant is eligible to avail CENVAT credit. We find that the definition of Manufacture under Section 2(f) of the Central Excise Act, 1944 with effect from 1.3.2003 is as under:- (f) manufacture includes any process, - (i) incidental or ancillary to the completion of a manufactured product; (ii) which is specified in relation to any goods in the Section or Chapter n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat case Imported and Packed by sticker was affixed by respective warehouse and the goods were transferred on stock transfer basis to Chennai from where it was marketed by affixing sticker/labeling. On plain reading of clause (iii) of Section 2(f) of the said Act, it is clear that manufacture would include packing / repacking of such goods in unit container or labeling / re-labelling of containers including the declaration or alteration of retail sale price on it for rendering the product marketable to the consumer. With effect from 1.3.2003, the definition of manufacture under Section 2(f) has wide amplification. Note 5 of Chapter 30 insofar as prior to amendment on 1.3.2003, it would be repacking from bulk packs to retail packs . But afte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount of CENVAT credit wrongly availed is exactly equivalent to the amount of excise duty paid by not availing the exemption, the consequence is revenue neutral and hence demand of such wrong availment of credit has been rightly quashed by the Tribunal. 10. After considering the submissions of both sides, we find that the applicant has made out a strong prima facie case for waiver of predeposit of entire dues. Accordingly, predeposit of duty along with interest and penalties are waived and recovery thereof stayed during the pendency of the appeals. All the stay applications are allowed. 11. We find that there are several appeals pending on this identical issue and therefore we direct the Registry to list all the appeals including the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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