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TMI Blog2017 (11) TMI 1294X X X X Extracts X X X X X X X X Extracts X X X X ..... he appellant has only populated some of the components in the enclosures supplied by the principal manufacturer. These are undoubtedly in the form of incomplete systems of various equipments and definitely cannot be marketed - There is nothing on record produced by Revenue that the incomplete goods are capable of being marketed without further processing. Since marketability is a very important aspect of manufacture, we are led to conclude that the goods cannot be considered as manufactured in the form in which they are cleared from the appellant’s factory. Appeal allowed - decided in favor of appellant. X X X X Extracts X X X X X X X X Extracts X X X X ..... tem. Similarly, they were fixing some components like mounting ralls, MCBs, condenser and cooling cover in the air-cooling panels received from M/s Acme and were also filling the refrigerant gas. Similarly in the cabinets for regulators, they were fitting transformer with some components. The semi-finished battery management systems, electrical panels, air-cooling systems and regulators were being sent by MI Telecom to M/s Acme-without payment of duty under Notification No.214/86-CE as M/s Acme had given an undertaking that they will use these goods for manufacture of the finished goods which would be cleared on payment of duty. The Department was of the view that since M/s Acme were availing duty exemption under Notification No.50/2003-CE, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and air-cooling system and the cabinets for regulators; that they were not manufacturing complete battery management systems, electrical panels, air-cooling systems and regulators; that complete battery management systems, electrical panels, air-cooling systems and regulators were coming into existence only in the premises of M/s Acme, who were clearing the same by availing full duty exemption under Notification No.50/2003-CE; that the goods which were being cleared by MI Telecom after doing the job work were not marketable goods and hence the same are not excisable. He further submitted that the adjudicating authority has decided the matter in de-novo proceedings without going into merits of the case and without considering the detailed fl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oods which are being cleared after job work are incomplete goods and are not marketable at that stage. Accordingly, it is their submission that no duty is liable to be paid by them. Matter was remanded in the previous round of litigation to the adjudicating authority specifically to verify whether these goods are marketable. He has recorded the findings that such goods are marketable since they are in the form of components, parts or sub-assemblies of the finished products being manufactured by the principal manufacturer. 8. To support the argument that the goods being cleared are not marketable, the appellant has mainly relied on the following case laws: i) Alumeco India Extrusion Ltd-2010 (249) ELT 577 (Tri.Bang. ii) Bata India Ltd-2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ents in the enclosures supplied by the principal manufacturer. These are undoubtedly in the form of incomplete systems of various equipments and definitely cannot be marketed, as such, in the light of the test laid-down by the Apex Court (supra). There is nothing on record produced by Revenue that the incomplete goods are capable of being marketed without further processing. Consequently, in our view, the goods failed the test of marketability. Since marketability is a very important aspect of manufacture, we are led to conclude that the goods cannot be considered as manufactured in the form in which they are cleared from the appellant's factory. 11. In view of the above, there is no justification for the demand of duty on the goods cleare ..... X X X X Extracts X X X X X X X X Extracts X X X X
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