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TMI Blog2019 (5) TMI 1530X X X X Extracts X X X X X X X X Extracts X X X X ..... led and transported to Roorkee. Roorkee units have only assembled the fully manufactured parts and have cleared the torches after claiming the benefit of the notification. The two units located at Roorkee were only manufacturing switches in question and were not in a position to manufacture the full torch. The assembling of various parts amounts to manufacture in terms of the provisions of Section 2(f) of Central Excise Act inasmuch as the same encompasses any incidental or ancillary activity. Even as per Note 6 of Section XVI the conversion of an incomplete article into a complete article would amounts to deemed manufacture. The Amending Notification No.01/2008-CE is applicable only in those cases where the processes undertaken does not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fine. 2. As per facts on record M/s Padma Flashlights Pvt. Ltd. and M/s Mahalaxmi Industries are located in Roorkee area of Uttrakhand, where Notification No.50/2003-CE dated 10.06.2003, granting area based exemption to the manufacturing units was in existence. The said two units, who are engaged in the manufacture of torches were availing the benefit of the said Notification, which grants exemption in respect of manufactured excisable goods subject to the conditions enumerated therein, to the units located in that area. 3. M/s Padma Flashlights Pvt. Ltd. also has a unit in Bombay, where various parts of torches and lighting products were being manufactured by them and were being cleared on payment of duty le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndustries along with imposition of penalties as detailed in the preceding paragraphs. The said order of the Commissioner is impugned before us. 5. We have heard Shri M. H. Patil, learned Advocate and Shri Nitin N. Mehta, learned Consultant appearing for the appellant and Shri Mohd. Altaf, Authorized Representative appearing for the Revenue. 6. It is seen that Notification No.50/2003-CE dated 10.06.2003 was amended vide Notification No. 1/2008-CE dated 18.01.2008 vide which Para 4 was inserted in the original notification. The said Para 4 reads as under:- 4. The exemption contained in this notification shall not apply to such goods which have been subjected to only one or more of the followin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ead and body assembly of the torches which are being assembled at Roorkee. None of the processes detailed above stand undertaken at the Roorkee Units. The said amendment denies the benefit of the Notification only when the processes undertaken by a unit do not amount to manufacture. As per the appellant the process undertaken by them at their Roorkee unit which included processes of assembling of various components received from their Mumbai factory and moulding of switches at Roorkee factory and putting the battery cells received directly from the manufacturer are the processes which amount to manufacture in terms of the provisions of Section 2 (f) of the Central Excise Act as incidental or ancillary processes to completion ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... complete or finished article (including 'blank', that is an article, not ready for direct use, having the approximate shape or outline of the finished article or part, and which can only be used, other than in exceptional cases, for completion into a finished article or a part), into complete or finished article shall amount to 'manufacture'. As such he submits that even according to the said note the activity undertaken by them account to manufacture and satisfies Clause (iii) of Section 2(f), which defines manufacture, any case in relation to which packing or repacking is undertaken in a unit container or labeling or re-labeling of the containers is done including the declaration or alteration of retail sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... leared the torches after claiming the benefit of the notification. The two units located at Roorkee were only manufacturing switches in question and were not in a position to manufacture the full torch. As against the above allegation the appellant has drawn our attention to the correspondence between them and Revenue establishing that their factory were visited by the Central Excise Officers on various dates and were found to be an a working condition. 11. It is Revenue s own case that what was transported by Mumbai unit was not full torch but various components of torches which were assembled to manufacture a torch. Without going into the detailed evidences produced by the Revenue on record, we note that Bombay unit was act ..... X X X X Extracts X X X X X X X X Extracts X X X X
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