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TMI Blog1989 (9) TMI 263X X X X Extracts X X X X X X X X Extracts X X X X ..... ssed by the learned Collector of Central Excise (Appeals) Bombay. 2. The respondents were served with four show cause notices-cum-demand by the Superintendent of Central Excise, Range II and III, Vapi for recovery of duty mentioned therein totalling to an amount of Rs. 15,91,956.31 P. for four periods viz. 4-9-79 to 22-1-80; 22-1-80 to 31-5-80; 1-6-80 to 30-11-80 and 1-12-80 to 31-5-81. The allegation made in the show cause notices-cum-demand are that the respondents are engaged in the manufacture of 'kum kum'. Further, it is alleged that the respondents had stopped the payment of Central Excise duty on the goods manufactured by them under Tariff Item 68 thus contravening Rule 9(2) of the Central Excise Rules, 1944. Further it was alleged ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the exciseable goods falling under any other tariff at all. Hence, they have sought for dropping of the proceedings raised by the Superintendent of Central Excise. 4. The Assistant Collector of Central Excise, Bulsar adjudicated the proceedings by virtue of order-in-original No. SCN 6/MP/83 dated 25-2-83 and by another order-in-original in F. No. V(68)(3)1/80-/MP-III dated 25-2-83 and passed the orders. The Assistant Collector held that the respondents were the manufacturers of kum kum and the product was classifiable under Tariff Item 68 and therefore, he confirmed the demand raised in the four show cause notices by virtue of the above two orders. The respondents filed two appeals before the Collector of Central Excise Bombay No. C-1151 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e also obtained a loan license to manufacture cosmetics on the premises situated at Shed No. Cl-B/704, G.I.D.C. Vapi C/o M/s. Ideal Beauty Products Pvt. Ltd., Vapi. The kum kum manufactured by M/s. Ideal Products were manufactured under the direction and personal supervision of M/s. Paramount Products, Vapi. Thus the activity of manufacture of kum kum in bulk at M/s. Ideal Beauty Products were by M/s. Ideal Beauty Products, Vapi who were getting the same filling in unit containers from the respondents on job charges. On the basis of these contentions, the Revenue submits that kum kum is not a product to be sold in bulk to wholesale dealers. It needs to be packed in retail consumer packs for marketing and as such, the process of repacking of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . We have heard both sides, perused the records and carefully considered the submissions made by the parties. The main question that arises for our consideration is as to whether re-packing of kum kum from bulk to retail containers amounts to manufacturing activity or not. Admittedly, the goods are covered under Item 68. It is well settled that repacking of goods does not amount to manufacture in respect of goods covered under Tariff Item 68. Admittedly, the kum kum is manufactured and produced in fully finished condition by M/s. Ideal Beauty Products. The goods are cleared from M/s. Ideal Beauty Products. As rightly held by the Collector(A), the duty liability of the goods is in the hands of M/s. Ideal Beauty Products. There is no process ..... X X X X Extracts X X X X X X X X Extracts X X X X
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