9911796707
TMI Blog2023 (7) TMI 45X X X X Extracts X X X X X X X X Extracts X X X X ..... ss, etc., to bring it back to the original shape and only thereafter that the machine in question could be sold or removed as such. That means the product was brought back into the factory only to be re-processed and this claim of the appellant was never disputed by the Revenue - the appellant carried out the required process of quality inspection and replaced the Servo Driven Filler with a Pneumatic Driven Filler. Further, the original machine that was made, was sent to the exhibition, which was brought back and after elapsing of some time, the machine was sold and cleared like any other excisable goods. That being the case, there are no contravention of the Valuation Rules by the appellant, as an important part of the machine sold has bee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 009, along with applicable cess. It appeared that since duty paid was less than the amount of credit taken, the Revenue entertained a doubt that in terms of Rule 16 (2) ibid., the process which the goods were subjected to before being removed did not amount to manufacture and therefore the manufacturer should pay an equal amount of the CENVAT Credit taken under Rule 16(1). 2. Entertaining a doubt that since the machinery was not subjected to any manufacturing process after being received back from the exhibition and cleared as such, the assessee was liable to pay equal amount of duty, A Show Cause Notice dated 08.09.2010 was issued proposing to demand differential duty along with applicable interest and penalty. 3. It appears that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , 1944. Appropriate interest was also demanded under section 11AB, apart from penalty under section 11AC ibid. 5. Aggrieved by the said order, it appears that the appellant preferred an appeal before the first appellate authority, but however, even the first appellate authority, having dismissed the appeal vide impugned Order-in-Appeal No. 182/2013 (M-IV) dated 26.04.2013, the present appeal has been filed before this forum. 6. Heard Shri P.C. Anand, learned Chartered Accountant for the appellant, and Shri N. Satyanarayanan, learned Assistant Commissioner for the Revenue. 7.1 Ld. Chartered Accountant would submit that there was a time span of nearly two months between the two invoices, during which time there had been a change ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rst removal, the invoice raised contains the description as Double Head Fully Automatic Linear Pick Fill Seal Machine for pre-formed pouches . In the specification sheet attached to the above invoice, it is mentioned as Filler: Piston Pump With Servo Driven . 11.2 In the second invoice, though the description remains the same, but it is mentioned as Non-Servo Driven Filler and the customer is clearly identified. 11.3 Thus, the main difference between the machine when it was returned from the exhibition and that which was sold subsequently is on account of the change in the piston pump. The machine which was sent for exhibition was fitted with Servo Drive whereas it was changed to Pneumatic Drive when it was subsequently sold a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bring it back to the original shape and only thereafter that the machine in question could be sold or removed as such. That means the product was brought back into the factory only to be re-processed and this claim of the appellant was never disputed by the Revenue. 13. We find that the appellant carried out the required process of quality inspection and replaced the Servo Driven Filler with a Pneumatic Driven Filler. Further, the original machine that was made, was sent to the exhibition, which was brought back and after elapsing of some time, the machine was sold and cleared like any other excisable goods. That being the case, we do not find any contravention of the Valuation Rules by the appellant, as an important part of the machin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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