9911796707
TMI Blog2007 (7) TMI 64X X X X Extracts X X X X X X X X Extracts X X X X ..... der Chapter Sub-Heading No. 3912.31 of CETA, 1985. Appellants cleared on payment of appropriate duty quantity of 9000 kgs. of SCMC (Akay lose TM) Grade to their purchasers. The purchasers of this SCMC grade Akay lose rejected the same on the grounds of not confirming to the standards. The appellant filed D-3 declaration showing the receipt of this 9000 kgs of rejected SCMC Akaylose TM Grade. After the verification of the said goods by the authorities, the appellants consumed these 9000 kgs of rejected SCMC by blending it with another grade of SCMC AKAYLOSE SD. Subsequently the appellants cleared 27000 kgs of SCMC AKAYLOSE SD Grade but paid duty only on 18000 kgs of SCMC and claimed benefit of provisions of Rule 173H for the 9000 kgs of SCMC ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der is correct and does not require any interference. 5. Considered the submissions made at length by both sides and perused the records. It is undisputed that appellants had manufactured SCMC of AKAYLOSE TM Grade and on rejection of this goods by the purchasers, the appellants received back the goods and declared it to the authorities under the provisions of Rule 173H of erstwhile Central Excise Rules 1944. It is also undisputed that the appellants had maintained proper records as to the receipt of the rejected goods and consumption thereof in the further processing of SCMC. On perusal of the Form-V register, as produced by the appellant, it is seen that the appellants had very clearly mentioned in the Form-V register that the rejected ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under Rule 173H. Once it is held that the appellants' goods falls within the parameters of Rule 173 any duty demand that has to be made will have to be in terms of this rule. The change or upgradation of the machine or change of some parts cannot be taken to be manufacture of a new product for excise purposes. Once the facility of 'remaking' is available the term 'remaking has to be given a meaningful meaning. Remaking of this would involve some change which is felt necessary by the assessee for the purpose for which the goods were brought inside the factory. In our view in the context of the appellants operations the appellants can be taken to have come within the parameters of Rule 173H. Rule 173H does not envisage any payment of duty in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was followed in the later judgment in the case of Stertilite industries Ltd. v. Collector of Central Excise, [1995 (75) E.L.T. 823]. The Judgment of the Tribunal in the case of Collector of Central Excise v. Kama industries, 1992 (42) ECR 522 is not relevant to the present dispute. In the case of J.G. Glass Ltd. as also Stertilite industries , the process involved in remaking of the defective goods which could be termed as manufacture. The process involved in the case of Sriram Pistons also amounted to remelting and re-manufacturing. However, in the latter two cases the Tribunal has gone clearly on the ground of an ambiguity in the structure of contested rule. The Ld. Collector in his order has also stressed this very point. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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