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TMI Blog2004 (1) TMI 277X X X X Extracts X X X X X X X X Extracts X X X X ..... the Commissioner (Appeals) and hold that the goods cleared are sub-assemblies. Such sub-assemblies and other parts, the state in which these are cleared, cannot be considered a washing machine in CKD/SKD condition. These cannot be considered a washing machine for the purpose of assessment. These should be assessed as parts of the washing machine. Therefore, the Commissioner (Appeals) has correctly decided the issue. The appeal of the Department is, therefore, rejected. - S/Shri G.A. Brahma Deva, Member (J) and K.C. Mamgain, Member (T) [Order per : K.C. Mamgain, Member (T)]. - This appeal is filed by Revenue against the Order-in-Appeal No. 1201/99-C.E., dated 20-11-1999, passed by the Commissioner of Central Excise (Appeals), Bangalore. 2. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal of the respondents and held that the goods cleared from the appellant's factory were sub-assemblies and not Washing Machines in CKD/SKD condition. There was no correlation of number of such parts in each clearance. He, therefore, set aside the Order-in-Original. The present appeal is filed by Revenue against this order of the Commissioner (Appeals). 3. Smt. Radha Arun, SDR appeared for the Revenue and Shri G. Shiva Dass, Advocate, appeared for the Respondents. 4. Smt. Radha Arun, learned SDR, stated that the issue involved in this appeal has already been decided by the Chennai Bench of the Tribunal in the case of the Respondents as reported in 2002 (149) E.L.T. 1416 wherein it was held that - "Tub sub-assembly, control plate assembl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pondents pleaded that the Respondents are engaged in manufacture of washing machines and its parts and accessories, some of the parts of washing machine are manufactured at their Bangalore factory and are cleared to their NOIDA factory. At the NOIDA factory, some more parts are procured and complete washing machine is assembled and cleared on payment of duty. The Department itself has accepted that the process carried out at their NOIDA factory amounts to manufacture and the factory was clearing the goods on payment of duty. This being so, the goods cleared at Bangalore factory could not be treated as complete washing machine and would have to be treated as parts of washing machine only. The Commissioner (Appeals) has accepted that the good ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sidered the submissions made by both the sides. We find that it is a question of fact whether the washing machines are cleared in CKD/SKD conditions or only parts are being cleared. We find that the CEGAT in their final Order Nos. 2407-2409/99 in the case of Respondents, as reported in 2002 (149) E.L.T. 1416 have observed as under : "............. It is not disputed that what was cleared was only two major sub-assemblies and 23 loose parts. Further, these loose parts were merely to be used in assembling the two sub-assemblies together and that such an assembly, when performed, would lead to the emergence of a fully working washing machine as known in the market and as bought by a customer. We also find that significantly enough it is on rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nputs cleared from the Bangalore factory were actually sub-assemblies and not washing machine in CKD/SKD condition. There is no correlation of number of such parts in each clearance. The parts/sub-assemblies have been sent to BPL, NOIDA where after assembling, the washing machines are cleared on payment of duty on a value which includes the value added at their NOIDA factory. No loss to Revenue as any additional duty demand can be taken as Modvat credit at the NOIDA factory. 8. We find that the kits have to be assessed in the form in which these are being cleared from the factory. The findings of the Commissioner (Appeals) are that the kits are not being cleared in the form in which it can be considered as washing machine in CKD/SKD conditi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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