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1999 (11) TMI 62 - SC - CustomsWhether the activity in which the appellant is engaged amounts to a process necessary for manufacture or production of a commodity or its activity is designed merely to offer services of any description? Held that:-Pre-recorded audio cassettes are certainly goods known in the market as distinct and different from blank audio cassettes. The two have different uses. A pre-recorded audio cassette is generally sold by reference to its name or title which is suggestive of the contents of the audio recording on the cassette. The appellant is indulging in a mass production of such pre-recorded audio cassettes. It is a manufacturing activity. The appellant's activity cannot be compared with a person sitting in the market extending facility of recording any demanded music or sounds on a blank audio cassette brought by or made available to the customer, which activity may be called a service. The Tribunal was not right in equating the appellant's activity with photo-processing and holding the appellant a service industry. Thus the Assistant Collector of Customs, Calcutta was not justified in rejecting the appellant's application for registration of the contract dated 6-11-1989 on the ground on which it did.
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