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2018 (6) TMI 651 - AT - CustomsRefund of SAD - N/N. 102/07-Cus., dated 14.09.2007 - denial of refund on the ground that the appellants have not sold the imported goods as such - Revenue entertained a view that inasmuch as latex gloves imported by the appellant, were subsequently put to certain processes like quality inspection visually, placing them in wallet/pouches and further in boxes/packages, which were being subject to process of sterilization, which process amounts to manufacture in terms of section 2(f)(iii) of the Central Excise Act, 1944. Whether the process undertaken by the appellant amounts to manufacture or not? - Held that:- The Hon'ble Supreme Court in the case of M/s. Servo-Med Industries Pvt. Ltd. Vs Commissioner of Central Excise, Mumbai [2015 (5) TMI 292 - SUPREME COURT] has held that the process of sterilization does not amount to manufacture. The said process does not convert the gloves to any other product than the gloves except that they are sterilized, which is not a lasting character and when the gloves are opened from the packing, the same tend to become desterlized. Apart from the fact that it is well settled principle of law that no extraneous conditions can be introduced in the notification which has to be interpreted on its own wordings, we also take note of the fact that though the earlier notification required the imported goods to be sold "as such", there is no such condition in the present Notification No. 102/07, which only used the expression "subsequently sold". Inasmuch as, the imported gloves have been sold by the assessee as gloves and it is only by deeming fiction of law that the activities of labeling, relabeling, packing, repacking etc., has been made as amounting to manufacture, we find that there is no justification to hold that the gloves have undergone any change - there is no justification for denial of the refund of SAD. Appeal allowed - decided in favor of appellant.
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