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2015 (6) TMI 401 - AT - Central ExciseManufacture - digital local telephone exchange - Whether assembly, installation and commissioning of switching system along with power plant, inverter etc. would amount to manufacture - Held that:- Appellant have purchased the switching equipment and other integral essential parts of the system such as power plant required for producing 48V DC power on which the system is operated, inverters for power break down etc., and assembled these equipments by their own staff at site into a digital local telephone exchange. As stated by Sh. HC Singla, an officer of the appellant company, the telephone exchanges can be shifted from one place to another place, It is in view of the above facts that the Department has alleged that the assembly, installation and commissioning of the switching equipments, power supply, inverter etc., has resulted into emergence of a new goods called 'digital local telephone exchange'. - main component of a telephone exchange is switching system which is an electrical apparatus for line telephony. The power plant and inverter are only auxiliary equipments. Power plant supplies the 48V DC current for functioning the switching system and inverter is required for standby period in case of power break down. Thus, the goods which have been purchased - Switching systems have remained the switching systems only even after installation and in our view no new commodity with distinct commercial identity or character or use has emerged. We find that the same view has been taken by the Tribunal in the case of Fuzitsu Indi Telecom Ltd. vs CCE Chandigarh (2002 (8) TMI 206 - CEGAT, COURT NO. I, NEW DELHI) wherein the Tribunal has held that the when bought out items of telephone exchanges were brought to the site of telephone exchange and assembled, no telephone exchange was manufactured requiring payment of duty. Moreover, from the technical literature produced by the appellant, it is clear that the switching systems are commonly called telephone exchanges and hence, on installation of a switching system, no new goods with distinct commercial identity and distinct characteristics or uses have emerged. The impugned orders, therefore, are not sustainable. - The same are set aside - Decided in favour of assessee.
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