TMI Blog2004 (2) TMI 570X X X X Extracts X X X X X X X X Extracts X X X X ..... hat basic raw material i.e. Pancakes (Magnetic Tapes), Plastic Bodies without magnetic tapes and inlay covers (I.C. Plastic Covers) were purchased by the appellants directly from the suppliers. The original sound track i.e. master copy of the programme and inlay cards were supplied by the various music companies, who reserved and owned the quality control and inspection rights. The entire production of a particular cassette programme was to be sold to the said music company and there was no liberty to the appellants, as an independent manufacturer, to sell audio cassettes to any other class of buyer. The music company had the right to reject the products. The relationship between an audio cassette and the music company could be established ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. Gramophone Co. of India v. Collector of Customs, Calcutta, the earlier decision relied upon by the appellant in case of M/s. Prabhat Sound Studios [1996 (88) E.L.T. 635 (S.C.)] is not correct and process carried on by the appellants amounted to manufacture under the Central Excise Act, 1944. It was also held that blank cassette and recorded cassette were distinct and different from recorded cassette, in characteristics, name and use and the process that transforms a blank cassette into recorded cassette rendering it a totally different commodity than the blank cassette. (b) The music companies had supplied master copy of the programme and inlay cards for the manufacture of recorded audio cassette and the price of the audio casse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The appellants rely upon the decision of the Supreme Court in Civil Appeal No. 238 (NM) of 1993 filed by M/s. Garware Plastics and Polyster Ltd. which set aside the CEGAT Order No. E/199/92-B1, dated 7-9-1992 as reported in 1993 (67) E.L.T. 670 (Tribunal). This decision will not assist the appellants since this is not a case simplicitor of video cassettes recorded being duplicated into another video cassette or/and recording or recording of an audio cassette, which were the subject-matters in the case of M/s. Garware Plastics and Polyster Ltd. and M/s. Prabhat Sound Studios [1996 (88) E.L.T. 635 (S.C.)]. The issue in this case is recording of an audio cassette tapes from the Pancake master copy of a programme supplied by the music co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as known and the issue settled, in the present case there was no inclusion of the vital costs of the Pancake magnetic master tape containing the programme, inlay cards and other items, these costs are required to be added. The larger period as invoked has to be upheld, since there is a misdeclaration of the values on which duty has been paid. 4. Before parting with this case, it would be relevant to observe that the cost of the Pancake master tape has to be amortized over the number of copies of the audio cassette tapes that have been made, as per the settled law on this subject. For this purpose, the demands of duty will have to be re-worked out. The demands as made cannot be upheld and the matter requires to be remitted for re-working o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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