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2016 (11) TMI 624 - AT - Central ExciseLevy of central excise duty - activities of assembling the various components of audio cassettes into CO cassettes on job charges - job work - audio cassettes without magnetic tape or ribbon (C-0 cassettes) - Held that: - reliance placed on the decision of the case Collector of Central Excise, Mumbai Vs. Shemaroo Video Recording P. Ltd. [1999 (2) TMI 151 - CEGAT, NEW DELHI] where it was held that assembly of video cassettes with magnetic tapes will not amount to manufacture - the various components received by the appellants were assembled by them manually assembly, the end product does not become an audio cassette as audio magnetic tapes either recorded or unrecorded. In other and even after it is not having words, the un-assembled components brought in by the appellants were cleared after assembly as C0 cassette. We find as such in such circumstances, there is no new product emerging satisfying the condition for manufacture. The department proposed classification differently in both the show cause notices whereas the Original Authority held that classification under CTH 852312, though the Board classified the components of audio cassettes under CTH 39.26. Further, we also note that valuation adopted is arbitrary and without any justification. The of principal supplier of components, who received back the assembled (C0) considered without any detailed examination - the duty demand against the appellant is held to be not sustainable - appeal allowed.
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