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2016 (11) TMI 1091 - CESTAT MUMBAIManufacture - whether packeting of pre-determined quantity of various O Ring & U Cap seals in plastic bags would amount to manufacture or otherwise? - Clandestine removal - during the period June 1999 to March 2004, appellant had cleared Seal kits for Pneumatic Cylinders & valves without Central Excise duty - Held that: - we find that the said invoice, as raised by the supplier, clearly indicates that the O Ring & U Cap seals are manufactured and cleared while the invoice raised by the appellant indicate the same as Seal kits which indicate that there are miscellaneous bought out spare items and were constituted items for particular valve. The question of considering this packeting as manufacture does not arise as the O Ring & U Cap seals were already marketable when the supplier/manufacturer had manufactured the same and cleared to appellant. Subsequent packeting of pre-determined quantity of these in a plastic bag has not made the products further marketable. In the absence of any note to the chapter that packeting of pre-determined quantity would amount to manufacture, this activity in our view cannot be considered as a manufacturing activity. O Ring & U Cap seals which were purchased by the appellant from various manufacturers and packeting the same as spares would not amount to manufacture by any stretch of imagination - appeal allowed.
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