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2014 (9) TMI 770 - AT - Central ExciseWaiver of pre deposit - Manufacturing activity or not - assessee took different stand for different units - Material Handling Equipment and its parts - assessee pleaded that the goods which the appellant procured were already marketable and the appellant did not undertake any activity to make them marketable except for inspecting the goods and putting in the plastic bags along with tags. - Confiscation of goods - Imposition of redemption fine - Held that:- In respect of the activity undertaken in the factory at Thane on the same goods, the appellant is treating the activity as 'manufacture' and discharging excise duty liability thereon. Therefore, there is no reason why in respect of the same activity on the same product undertaken at their Bhiwandi godown, a different stand should be taken holding that the activity does not amount to 'manufacture'. The appellant cannot choose to discharge excise duty liability in some cases and not discharge duty liability in some other cases. Therefore, the claim of the appellant that the activity undertaken by them does not amount to 'manufacture' does not appear to convincing at this stage. During the course of argument, a question was also put to the appellant as to why they are procuring these parts and distributing it to their customers. In reply thereof, it was stated that these parts are difficult to obtain and once these are procured by the appellant and delivered to the customer, the customers believe the parts to be genuine and the same are supplied with the warranty cards. If that be so, the activity undertaken by the appellant improves the marketability of the product. Thus any activity, which improves the marketability of the product by undertaking labeling and packing etc. would definitely amount to 'manufacture'. Prima facie case not in favour of assessee - stay granted partly.
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