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TMI Blog2017 (12) TMI 952X X X X Extracts X X X X X X X X Extracts X X X X ..... ds in unit containers because the master carton in which four blades sets and four motors sets were packed and MRP sticker applied is not a unit container. Coming to the labelling part, which was carried out in the appellants godown, we find that at the time of receipt of goods, the said goods bore the MRP stickers valid for 10 or 11 states. However, if the said goods were to be dispatched to states other than those 10 or 11 states, the old MRP sticker was changed and a new higher value MRP sticker was affixed - The word re-labelling is followed by the inclusive part which expressly mentions alteration of retail sale price as one type of re-labelling, which on its own would amount to manufacture - the activity of re-labelling of MRP stickers or affixing higher MRP stickers as in the present case amounts to manufacture - the activity carried out by the appellants at their Faridabad godown amounts to manufacture. Extended period of limitation - Held that: - the reasoning given by the Ld. Commissioner that the appellants have pre-planned the entire things to evade the central excise duty is not convincing - there does not appear any mens rea on the part of the appellants - exten ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and Pedestal Fans etc on total 1,89,807 pieces of fans collectively valued to ₹ 13,84,15,914/- and removed/ dispatched to Andaman Nicobar Island, Daman Diu, Dadra Nagar Haveli, Goa, Gujarat, Himachal Pradesh, Jammu-Kashmir, Jharkhand, Karnatka, Maharashtra, Orissa, Punjab, Tamilnadu, Kerala and North-Eastern States from their godown without payment of duty. Statements of the Sh. J.P. Gupta, Dy. General Manager (appellant no.2) and Sh. R.A. Lohariwala, Executive Director (appellant no.3) were recorded. A show cause notice was issued and demand of ₹ 2,25,89,477/- alongwith interest was confirmed and penalty of ₹ 2,25,89,477/- under Section 11AC of the Act was imposed and option to pay reduced penalty @25% was given by the adjudicating authority. Penalty of ₹ 5000/- each was also imposed on appellant no.2 and appellant no.3. Aggrieved from the adjudication order, the appellants have filed this appeal. 3. Ld. Advocate for the appellants assailed the impugned order and argued that complete fans were not packed in one box and motors and blades were not in the form of sets and could not be called as fan in the position they were lying at the time of the vi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xtracted below:- In their warehouse they received goods from their Paonta sahib unit, the goods include Electric motors, fan blades, exhaust fan, pedestal fan, wall fan and other. The goods received from Paonta Sahib were used to dispatch to their own branches. He further stated that at the time of receipt of goods from Paonta Sahib factory, the said goods bore MRP stickers valid for Haryana, Chandigarh Delhi, M.P., Chattisgarh, Rajasthan, Sikkim, Uttar Pradesh, Uttranchal West Bengal and if the said goods had to dispatched to states other than above said states, they used to change old MRP stickers and affixed higher value MRP stickers and then dispatch to other states. He further stated that re-packing of goods, affixing higher value of MRP stickers activities were doing at their godown premises but neither central Excise Registration was obtained from said activities nor was any Central Excise duty paid on changed MRP of repacked goods at said premises. He further admitted that he was aware that packing/re-packing of goods in a unit container and alteration of MRP/retail sale price amounts to manufacture within the meaning of Section 2(f) of Central Excise Act, 1944. He a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1560 1560 3. C/F 1200 mm m/crown Epro 1485 (inv No. 284 dt. 08.08.05) 1545 1545 4. C/F 1200 mm mag. Epro 1205 (inv No. 287 dt. 09.08.05) 1250 1250 5. C/F 1200 mm flair Epro 1465 (inv No. 284 dt. 08.08.05) 1520 1520 6. C/F 1200 mm sheriff Epro 1230 (inv No. 284 dt. 08.08.05) 1280 1280 7. C/F 1200 mm obelo Epro 1390 (inv No. 284 dt. 08.08.05) 1445 1445 8. C/F 1200 mm Sheriff crown 1375 (inv No. 291 dt. 11.08.05) 1430 1430 9. T/fan merlin maestro 1740 (inv No. 755 dt. 26.12.06) 1810 1810 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... their Faridabad godown amounts to manufacture under Section 2(f)(iii) of Central Excise Act. The decision on this question would be clearly based on terminology employed in the statute and its grammatical structure. We note that first part of definition in Section 2(f)(iii) involves packing or re-packing of goods specified in Third Schedule in a unit container. In this regard, we find that the activity carried out by the appellants in their Faridabad godown cannot be called as packing or re-packing in unit container because as per the statement of Sh. J.P. Gupta, Dy. General Manager, four motors and four sets of blades received from their factory at Paonta Sahib were packed together in master cartons. Further, as per the statement given by Sh. Ram Verma, the store in-charge, four motors with one set of blades for each were packed in one carton and then re-packed in one outer master carton. The master carton was fastened with a packing strip and MRP sticker was affixed on the said master carton. The above activity cannot be called packing or re-packing of goods in unit containers because the master carton in which four blades sets and four motors sets were packed and MRP sticker ap ..... X X X X Extracts X X X X X X X X Extracts X X X X
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