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2015 (10) TMI 1726 - AT - Central ExciseManufacture - Activity of converting /assembling Gas Generating Sets (Gensets ) comprising of engine (prime mover) coupled with Alternator on common base frame into Power Pack after certain processes - Held that:- it is seen from the record that the process undertaken by the Appellant on the imported Gensets for the industrial customers. Thus, the industrial customer would buy Power Pack rather than Gensets. The imported Gensets and Power Pack are known separately in the trade and parlance. It is also noted that the use of both the items are for different purposes. - the process undertaken by the Appellant would constitute manufacture as it emerges a new commodity in the market. - Decided against the assessee. Change is classification is required to not - Held that:- the identical issue was raised before the Hon ble Supreme Court in the case of Laminated Packings Pvt. Ltd [1990 (8) TMI 141 - SUPREME COURT OF INDIA]. It has been observed that the goods belongs to the same entry is also not relevant because even if the goods belong to the same entry, the goods are different identifiable goods known as such in the market. If that is so, the manufacture occurred and if manufacture takes place, it is dutiable. The said decision would squarely apply in the present case and the Power Pack is rightly classified under sub-heading No.85022090 of Central Excise Tariff Act, 1985. - Decided against the assessee. Extended period of limitation - revenue neutral exercise - Held that:- Hon ble Supreme Court in series of cases, has held that the extended period of limitation, would not be invoked in the case of revenue neutrality as the CENVAT Credit is available against the demand of duty. - Benefit of period of limitation allowed. Appellant acted under a bonafide belief that the activities undertaken by them would not amount to manufacture. It is the case of interpretation of the provisions of law and therefore, the imposition of penalties on the Appellants are not warranted. - confiscation and penalties set aside. - Decided partly in favor of asessee.
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