TMI Blog2015 (1) TMI 1034X X X X Extracts X X X X X X X X Extracts X X X X ..... d amount to manufacture in view of the above-referred deeming provision and consequently these goods will be liable to duty because goods bearing brand names of others are not eligible for SSI exemption as per para 4 of SSI exemption Notification No. 8/2003-C.E., dated 1-3-2003. - amplifier speakers with or without FM radio manufactured by them and cleared under their own brand name would be eligible for SSI exemption under Notification No. 8/2003-C.E., dated 1-3-2003 as their clearances were below the threshold limit. - it is not necessary to verify these figures at this stage or to delve deep into the possibility of the suppliers/buyers of speakers being related to the appellants for the mere purpose of arriving at a reasonable figure for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellants on account of the Central Excise duty not paid, and ordered the Appellants to pay this amount forthwith; (iv) ordered that the interest, according to the terms of Section 11AB of the Central Excise Act, be charged from the Appellants on the amount of Excise Duty determined as per (iii) above; (v) held the seized goods, valued at ₹ 9,08,358/-, liable to confiscation under Rule 25 of the Central Excise Rules, 2002; and since those goods were released provisionally and are now represented by Bond and Bank Guarantee furnished for the provisional release of those goods, extended an option to redeem those Bond and Bank Guarantee on payment of a fine of ₹ 2,00,000/-; (vi) imposed penalty of ₹ 88,27,94 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her hand, amplifier speakers covered under Heading 85.18 do not suffer from any such deeming provision and thereby putting others brand names thereon would not amount to manufacture. 3. The learned DR contended that the speakers with FM radio would be covered under Chapter Heading 85.27 and added that the suppliers/buyers of the speakers belonged to (or were controlled by) the relatives of the appellants. 4. The descriptions of Headings 85.18 and 85.27 are reproduced below :- Ch. H. 8518 Microphones and stands thereof; loudspeaker, whether or not mounted in their enclosures; headphones and earphones, whether or not combined with a microphone, and sets consisting of a microphone and one or more loudspeakers; audio-frequency ele ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he appellants the value of clearances of amplifier speakers with FM radio bought from others and cleared after putting others brand names is about 1/4th of the total clearances on which the duty has been confirmed. We don t find it necessary to verify these figures at this stage or to delve deep into the possibility of the suppliers/buyers of speakers being related to the appellants for the mere purpose of arriving at a reasonable figure for pre-deposit for the purpose of fulfilment of the requirements of Section 35F of the Central Excise Act, 1944. As the duty confirmed is of the order of ₹ 88 lakhs, a pre-deposit of ₹ 22 lakhs will fairly serve the said purpose. 8. In view of the foregoing, the appellants are ordered to ma ..... X X X X Extracts X X X X X X X X Extracts X X X X
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