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2005 (12) TMI 357 - CESTAT, MUMBAIDemand - Rejected goods - clearance after re-making - Whether repair/remaking of rejected batteries involves manufacturing activity attracting duty under the Central Excise Act? - HELD THAT:- We find that Rule 173H allows the appellants to receive batteries to be re-made/repaired within a period of one year or within the period of warranty. However, removal of such goods after repair/remaking without payment of duty is conditional upon such process of repairs/remaking not amounting to manufacture as provided under sub-rule (3) of the said Rule 173H. After considering the process of remaking of new batteries from the defective/damaged batteries we are of the view that such remaking amounts to manufacturing. Thus, we are of the view that the appellants are not eligible for duty free clearance of remade batteries under Rule 173H. Accordingly, we set aside the impugned order in appeal and restore the order in original. The appeal is allowed.
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