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2015 (2) TMI 465 - AT - Central ExciseWaiver of pre deposit - CENVAT Credit - manufacturing activity or not - whether the activity of inspection, labelling, affixing of stickers or re-labelling amounts to manufacture or not and whether the applicant is eligible to avail CENVAT credit. - Held that:- after receiving the imported goods in the warehouse, the applicant undertook the activity of inspection, quality check and repacked it. While repacking, the applicant affixed sticker Marketed by and also affixed the tape having the markings of HONDA. Similarly, when the goods were imported in any of the warehouse situated at Mumbai, Kolkata, Greater Noida and Bhiwadi, and in that case Imported and Packed by sticker was affixed by respective warehouse and the goods were transferred on stock transfer basis to Chennai from where it was marketed by affixing sticker/labeling. On plain reading of clause (iii) of Section 2(f) of the said Act, it is clear that manufacture would include packing / repacking of such goods in unit container or labeling / re-labelling of containers including the declaration or alteration of retail sale price on it for rendering the product marketable to the consumer. With effect from 1.3.2003, the definition of manufacture under Section 2(f) has wide amplification. Note 5 of Chapter 30 insofar as prior to amendment on 1.3.2003, it would be repacking from bulk packs to retail packs . But after the amendment, it includes packing or repacking of such goods in a unit container . In other words, it includes any repacking in unit container. - prima facie, we find there is inspection, repacking and relabeling of the container from unit to unit container or bulk to unit container. Thus, there is repacking of such goods in container and covered within the definition of manufacture under Section 2(f) of the Act, 1944. - applicant has made out a strong prima facie case for waiver of predeposit of entire dues. Accordingly, predeposit of duty along with interest and penalties are waived and recovery thereof stayed during the pendency of the appeals. - Stay granted.
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