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TMI Blog2016 (11) TMI 624X X X X Extracts X X X X X X X X Extracts X X X X ..... audio magnetic tapes either recorded or unrecorded. In other and even after it is not having words, the un-assembled components brought in by the appellants were cleared after assembly as C0 cassette. We find as such in such circumstances, there is no new product emerging satisfying the condition for manufacture. The department proposed classification differently in both the show cause notices whereas the Original Authority held that classification under CTH 852312, though the Board classified the components of audio cassettes under CTH 39.26. Further, we also note that valuation adopted is arbitrary and without any justification. The of principal supplier of components, who received back the assembled (C0) considered without any detail ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order dated 19.02.2008, wherein the Commissioner confirmed the duty demand of ₹ 42 52,863/- and imposed equal amount of penalty on the appellant. It was held that the appellants are liable to central excise duty on assembled components of C0 cassettes. 3. Ld. Counsel for the appellant submitted that they were receiving various components of audio cassettes like shell/plastic cover engraved with brand name, plastic rollers, pressure pads, shield, leader with hub, paper, screws. These components were assembled manually without aid of power or machine and the assembled components of audio cassettes without any magnetic tapes were returned back to the principal M/s. Sweet Voice Cassettes (India) Pvt. Ltd. The appellants were receiving ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... note that a similar matter regarding tax liability of video cassette was considered by the Tribunal in Collector of Central Excise, Mumbai Vs. Shemaroo Video Recording P. Ltd. - 1999 (108) ELT 457 (Tribunal). In the said case, the Tribunal relying on the earlier decision in British Physical Laboratories (India) Ltd. - 1990 (50) ELT 567 (Tribunal) held that assembly of video cassettes with magnetic tapes will not amount to manufacture. In the present case also. we find that the various components received by the appellants were assembled by them manually assembly, the end product does not become an audio cassette as audio magnetic tapes either recorded or unrecorded. In other and even after it is not having words, the un -assembled comp ..... X X X X Extracts X X X X X X X X Extracts X X X X
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