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2018 (5) TMI 381 - AT - Central ExciseCENVAT credit - engines/pump/frames - denial on the premises that the process undertaken by them does not amount to manufacture - Whether the activity of inspection and testing in respect of the parts for proper alignments of pump set on engines, pump and base frames and packing thereof in master box amounts to manufacture as held by the Member - Difference of opinion - majority order. Held that: - the view expressed by Brother Member (Judicial) are agreed upon, that the process of manufacture is involved in the subject goods - the facts are not in dispute that the appellant are procuring engines, pumps and base frames from various suppliers. These items were inspected by the appellant for proper alignment of engine, pump and base frames and all these items are sold all together. As all these items are sold by the appellant together as pump sets, therefore, engine, pump and base frames are not sold as such by the appellant, therefore, the new product has come into existences after inspection and alignment done by the appellant, therefore, we hold that the activity undertaken by the appellant amounts to manufacture. The activity of inspection and alignment of the pumps, engines and base frame makes marketable as pump set, in that circumstances, the process undertaken by the appellant amounts to manufacture. In view of the majority decision that the activity undertaken by the appellant amount to manufacture, the appeal filed by the appellant is allowed.
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