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2018 (3) TMI 613 - AT - Central ExciseManufacture - Whether the activity of quality checks, branding with CONA brand and packing of electrical parts and fittings received in loose condition amount to manufacture in light of note 6 of Section XVI of Central Excise Tariff Act and Section 2(f)(iii) of Central Excise Act and in respect of goods falling under Chapter 85.36, whether it amounts to manufacture in terms of IIIrd Schedule of Central Excise Act, 1944 w.e.f. 1-3-2003? - Held that: - The product purchased by the appellant is already complete and finished. Merely a quality test, which is nothing but by connecting with the power plug for checking whether it is working or not but by this quality test there is no transformation of the product, which is already in the fully manufactured form, therefore all the electrical goods purchased by the appellant are completely in manufactured form - this so called activity of quality testing, branding and packing of the already manufactured goods will not be covered by note 6 of Section XVI of the Central Excise Tariff - the appellant is not engaged in the manufacturing of the goods, they are only doing trading activity of bought out goods. SSI exemption - brand name - whether the appellant is owner of brand CONA and consequently entitle for SSI exemption? - Held that: - brand was transferred to the appellant by way of Assignment Deed dated 10-12-1996. Moreover, the appellant also made application to Trade Mark Registry on 20-12-1996 for ownership of CONA brand in their name which was registered in their name on 21-2-2003 but it was effective from 10-12-1996. These facts clearly establish that from 10/20-12-1996 appellant became brand owner of CONA - appellant is owner of the brand CONA and consequently entitle for the SSI exemption. Whether extended period under proviso to section 11A(i) and penalty under Section 11AC and/or redemption find are invokable/imposable? - Held that: - the entire facts regarding use of brand name CONA as well as activity of the appellant was well within the knowledge of the department. Moreover after getting convinced initial proceedings was dropped therefore it cannot be said that there was any mala fide intention or suppression of facts on the part of the appellant - extended period not invokable - penalty also set aside. Demand is neither sustainable on merit nor on limitation - appeal allowed - decided in favor of appellant.
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