TMI Blog1996 (5) TMI 228X X X X Extracts X X X X X X X X Extracts X X X X ..... Gulati, Member (T)]. The issue involved in the appeal relates to demand of differential duty in respect of motor bikes which were earlier cleared on payment of duty from the appellants factory and were later brought inside the factory under Rule 173H and which on clearance after the processes carried out under Rule 173H were found to fetch higher price by reason of the change of the model. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vocate is absent and has sought adjournment for the reason that he unavoidably held up in hospital. Since the issue falls in a short compass, we have declined the request for adjournment and have taken up the appeal itself for disposal on merits. 3. The learned JDR for the Department has pleaded that the goods were initially allowed clearance and the goods had been earlier cleared on payment of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ried out, any differential duty could be demanded once the appellant has satisfied the requirements of Rule 173H. He has no specific plea to make except to say that by virtue of the change of the model a new product has come into existence, and therefore the demand of differential duty is maintainable in law. 4. We have considered the pleas made. We observe that the Central Excise authorities al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... H any duty demand that has to be made will have to be in terms of this rule. The change or upgradation of the machine or change of some parts cannot be taken to be manufacture of a new product for excise purposes. Once the facility of remaking is available the term`remaking has to be given a meaningful meaning. Remaking of this would involve some change which is felt necessary by the assessee for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rging after those processes are to be treated as a new manufacture. This is not the position under Rule 173H. As it is the authorities are demanding differential duty attributable to the value addition as a result of the processes carried out not on the full value of the goods which were brought into the factory. In case the goods have been treated as new manufacture then duty should have been dem ..... X X X X Extracts X X X X X X X X Extracts X X X X
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