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2011 (10) TMI 538 - AT - Central ExciseConfiscation of goods - Redemption fine - Absence of Condition u/s 11AC - Difference of opinion - Majority order - whether the order of confiscation of the impugned car is justified and, therefore, the imposition of redemption fine and penalty on the appellant is correct or not in the facts and circumstances of the case - Held that:- assembly of cars from various components brings into existence an excisable item, namely the car, which is distinct or different from the parts from which it is assembled. Therefore, the assembly of car from the component parts amounts to manufacture under Section 2(f) of the Central Excise of the Act and excise duty is liable to be charged on such assembly. There is no dispute on this point that the activity of assembling of the car by the appellant amounts to manufacture. Once a manufacturing activity is undertaken for manufacture of excisable goods, the manufacturer is required to obtain a licence from the Central Excise department under Rule 174 of the Central Excise Rules and if any manufacturing activity is undertaken without a licence from the department, there is a contravention of the Central Excise Rules and the excisable goods so manufactured are liable for confiscation under Ruled 173Q(1)(c). This is also a fact that Section 11AC was not in existence at the time of this manufacturing activity undertaken by the appellant. Therefore, the absence of the condition of Section 11AC will not have any effect on the confiscation of the goods in this case - order of confiscation of the impugned cars and the consequential imposition of redemption fine and penalty is upheld - Decided against assessee.
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