9911796707
TMI Blog2000 (6) TMI 110X X X X Extracts X X X X X X X X Extracts X X X X ..... 11,14,732/- under Rule 9(2) read with Rule 173Q of C. E. Rules and Section 11AC of the Act has been imposed. 2. The charge against the appellants was that they were bringing together all parts of water filter and packing the same in printed cartoons and presenting the complete unit called "Aqua Guard ST-2000" in its completeness amounted to process of manufacture attracting Central Excise duty. It was found by the investigating officers that the appellants had not obtained central excise registration from the department and had not paid duty on the complete product, thus manufactured and cleared by them, and hence duty demand was raised for the period Oct' 92 to Jan' 97 by invoking proviso to Suction 11A of the Act. Detailed statements w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d and interest also chargeable. 4. When the matter came up for hearing, ld. Counsel submits that the issue in question was raised by appellants in other proceedings initiated by the Commissioner of Central Excise, Mumbai VI on the same events that such removal of bought out items had already suffered duty and marketing in the like manner did not amount to process of manufacture. The appellants had taken the very stand as in the present case that such assembly did not result into a process of manufacture and no new goods arose. The Section note 6 of Section XVI also was contested and it was pointed out that the same had no applicability to the facts of the case. However, the Commissioner of Central Excise, Mumbai VI did not agree with thei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ellant amounts to manufacture, that is to say, whether by applying the test laid down by the Supremenciourt and other couts whichhas evolved over the the period of years and is now universally accepted the activity of the appellants os changes so changes the nature of the goods which the appellant receives that a new product having commercially distinct name, character and use emerges. The brochure of the appellant, and the technical reports of the two authorities that we have preferred to in paragraph above indicate that the function of the pre-filter is to enhance or support the filtering function of the main unit. These reports show that the turbidity of the water is reduced to some extent when the pre-filter is employed. They also show ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he tariff. So, as a matter of fact, is the pre-filter received by the appellant. 9. For the purpose of classification in the tariff, therefore, the activity undertaken by the appellant does not amount to manufacture. This is the sole basis that the notice and the order of the Commissioner have proceeded upon, that by the addition of the pre-filter, the nature of function of the unit is drastically revised and, that therefore it has assumed the characteristic of a new, commercially distinct article. As we have noted, they say that the commodity which earlier carried out the function of water purifier has changed into a commodity which is a water filtration and purification apparatus. For this charge to sustain, it will have to be shown tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctric fans confers upon them the marketability which, they did not otherwise possess, the act constitutes manufacture. In this case, apart from the fact that a small proportion of the Aquaguard is sold to the user without the pre-filter, the Aquaguard manufactured by APIC is sold to the appellant. The addition of the pre-filter hence does not confer on it a marketability that it did not earlier possess. 12. In the light of this finding, we have not considered it necessary to record out submissions on the arguments which were addressed on the availability to the department of the extended period of limitation (cited in the notice) contained the proviso under Section 11A(1) of the Act. 13. Appeal allowed. Impugned order set aside. 7. We ..... X X X X Extracts X X X X X X X X Extracts X X X X
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