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TMI Blog2017 (8) TMI 1267X X X X Extracts X X X X X X X X Extracts X X X X ..... dran These appeals are against common impugned order dated 31/01/2013 passed by Commissioner of Central Excise, Delhi - II. The main appellant in this case is M/s Global Enterprises (hereinafter, GE), New Delhi, a proprietary concern of Shri Rishi Baluja. GE were engaged in manufacturing/trading of multi media speakers, with or without FM radio, classifiable under Chapter 85 of Central Excise Tariff. The Central Excise officers conducted search and verification in the premises of GE in April, 2011. Follow up investigations were conducted and statements of various connected persons were recorded. Certain excisable goods were also seized. On completion of the investigation a show cause notice dated 27/04/2012 was issued to various persons. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facts of the case are that GE were engaged in manufacture/selling/trading of multi media speakers. GE purchased parts of speakers and assembled them into multi media speakers. These speakers were sold with their brand name "EXCEL". They claimed that during the period 2007-2008 to 2010-2011, no duty was payable on these speakers as the value of clearance was within the SSI exemption limit. Multi media speakers with or without FM radio were also received by GE from M/s Krishna Technologies and M/s JMD Computers. GE printed brand names of various buyers on such speakers and packed them for sale. The disputes in the present appeal mainly revolves around two issues :- (a) classification of multi media speakers with FM radio and (b) the use of br ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 85185000 Electric sound amplifier sets 85189000 Parts" "8527 Reception apparatus for radio-broadcasting, whether or not combined, in the same housing with sound recording or reproducing apparatus or a clock - Radio-broadcast receivers capable of operating without an external source of power : 85271200 Pocket-size radio cassette-players 85271300 Other apparatus combined with sound recording or reproducing apparatus 85271900 Other - Radio-broadcast receivers not capable of operating without an external source of power, of a kind used in motor vehicles : 85272100 Combined with sound recording or reproducing apparatus 85272900 Other Other Other 85279100 Combined with sound recording or reproducing apparatus 85279200 Not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... both the products are almost identical except for the fact that in one, there is a an additional built in FM radio, in the sub-woofer. We are not in agreement with the lower authority in the conclusion that the speaker system combined with sub-woofer having built in FM radio, attains clearly defined function of an FM radio rather than a speaker system. In a plain trade parlance it is clear and apparent that a person intend to buy a multi media speaker system will consider the impugned product for his requirement. The FM radio is an added, in built feature. As clearly shown in the sales brochure, the main function of the product is being provided by speaker system with sub-woofer. 7. We note that almost similar issue of classification of m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... brand, the brand "QHMPL" is mentioned. We note that the brochure shows EXCEL as a registered trade mark. It is indicated that the said speakers are marketed and supported by QHMPL group. We find, no brand name of other person can be said to have been used in such situation. 10. Regarding manufacture of speakers with other's brand name we note that GE is affixing brand name of buyers on the speakers purchased from M/s Krishna Technologies and M/s JMD Computers. We note that the show cause notice did not propose demand on combined turnover of GE, Krishna Technologies and JMD Computers. The manufacture of multi media speakers by M/s Krishna Technologies and M/s JMD Computers has been indicated in the statements given by Shri Rishi Baluja, Shr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t duty liability, if any. They have claimed that the turnover during the impugned periods is well below the threshold limit of Rs. 1.5 crores. This needs reverification and confirmation by the Jurisdictional officer. 13. With the above observation and in view of our finding against the impugned issues, we set aside the impugned order and allow the appeal of M/s Global Enterprises on the above terms. 14. We note that in view of the above findings the appeal against penalty under Rule 26, filed by M/s Kaizen Computech Ltd. is also to be allowed. 15. In view of the above findings with reference to GE, there is no merit in the appeals by Revenue for imposition of penalty on various individuals. These appeals are dismissed. (Order pronounced ..... X X X X Extracts X X X X X X X X Extracts X X X X
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