TaxTMI 
TaxTMI 
2000 (4) TMI 330
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....ng their brand name on tickli on taps, cocks and valves amounts to manufacture in terms of Note 6 to Section XVI of the schedule to the Central Excise Tariff Act. 2. Shri Shiv Das, Learned Advocate, submitted that the Appellants are engaged in the activity of buying and selling of taps falling under Chapter 84 of the Central Excise Tariff; that they receive fully manufactured cocks & valves duly fitted with the ticklies on top of the items; that they merely embossed/affixed their brand name on the tickli of the taps; that they did not purchase the tickli separately; that the Commissioner has confirmed the demand of duty and imposed penalty holding that the process of reaffixing of ticklies after embossing the brand name on the taps am....
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....den is on the department to prove manufacture and that they purchased the metal tickli separately from the market and affixed the same on the tapes; that the burden has not been discharged by the Department. 3. The learned Counsel submitted that the reliance placed on Note 6 to Section XVI is wholly incorrect; that the Note contemplates that the item in the first place has to be in an incomplete or unfinished form and such an article has to be converted into a complete or finished article and such a conversion would amount to manufacture; that with or without the tickli, tap can not be considered as incomplete or unfinished article; that the very fact that they had purchased the same shows that the taps are complete and finished produ....
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.... the impugned products, i.e. taps, cocks and valves can be termed as incomplete or unfinished having the essential character of complete or finished tap. He referred to the statement of Shri O.P. Syal, General Manager, in which he deposed that they purchase the unbranded finished material from various ancillary units and affix ticklies embossed with brand on them; that these ticklies are fitted in the plastics rings manually and are fixed on handle of finished material and without affixing ticklies the product cannot be sold in the market. The learned S.D.R. also mentioned that the Appellants were testing the product and for this purpose they had installed a pump to check the leakage and employed a quality control manager; that they were al....
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....borate one; Note 6 does not bar any activity, undertaken by a person, from being amounting, to 'manufacture'; that in terms of Note 6 to Section XVI, criteria of a product being different commondity having a distinct name, quality or use for being considered a process of manufacture is not applicable. He emphasised that when a person buys any product, it has to be in complete form; that the impugned products look to be incomplete or unfinished without a tickli; that further tickli prevents also accumulation of water at the place where tickli is fitted in; that moreover it also helps in concealing the screw; that the decision in the case of Meters and Instruments P. Ltd, supra, will not apply as the facts are different in both the matters. ....
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....rded the same being an after thought. He has also given his findings that the Appellants had failed to produce any evidence showing that goods purchased by them during the disputed period were received in their premises duly fitted with ticklies on taps. We feel that the Commissioner has gone wrong in arriving at the conclusion that taps were received without tickli in absence of any evidence brought on records by the Appellants. In fact the burden is cast upon the Revenue to prove that the goods and ticklies were separately brought into the premises and thereafter ticklies were fitted by the Appellants. No evidence has been brought on record by the Revenue to prove that ticklies were fitted by the Appellants. Show Cause Notices dated 27-1-....
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....lants were receiving the taps fitted with Tickli. The learned S.D.R is only drawing inferences from their replies that the taps were being received without ticklies. The mere fact that some taps were sold without tickli does not mean that the taps which were sold with tickli were fitted with tickli in the premises of the Appellants. Nowhere in replies to show-cause-notices, the Appellants have admitted that they were fitting ticklies on top of the taps in their premises. In fact in Para 4 of their reply dated 27-5-1998; they had specifically mentioned that they had omitted the affixation of tickli to avoid any controversy and had informed the Department under their letter dated 7-10-1997. We also observe from perusal of letter dated 12-8-19....