TMI Blog2007 (2) TMI 26X X X X Extracts X X X X X X X X Extracts X X X X ..... Central Excise, Pondicherry. In the impugned order the adjudicating authority has held that M/s. Ericsson India (P) Ltd. (ECPL) had manufactured Transmission Apparatus for Radio Telephony (TART), an excisable item classifiable under sub-heading 85.25 of the Central Excise Tariff without following Central Excise formalities. The Commissioner demanded duty of Rs. 3,57,16,259/- on the item under proviso to sub-section (1) of Section 11A of the Central Excise Act, 1944 along with interest due thereon from ECPL. He also imposed a penalty of equal amount on ECPL. A penalty of Rs. 30 laths was imposed on on M/s. Aircel Limited (Aircel) under Rule 209A of the erstwhile Central Excise Rules, 1944/ Rule 26 of the Central Excise Rules, 2001/2002. Appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ral Excise Tariff Act, 1985, provides that conversion of an article which is incomplete or unfinished but having essential character of the complete or finished article (including blank, that is an article, not ready for direct use, having approximate shape or outline of the finished article or part, and which can only be used, other than in exceptional cases, for completion into the finished article or part) into complete or finished article shall amount to manufacture.' 4. Hence, the assembling of Transmission Apparatus for Radio Telephony by ECPL amounted to manufacture and Transmission Apparatus for Radio Telephony was classifiable under Chapter Heading 8525.00 attracting Basic Excise Duty at the rate 16% ad valorem. The transmissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... place to another as such. They did not have any expertise to assemble the technically complex components such as MSC, BSC and BTS. They had only installed the imported equipments in a network. That activity was outside the Central Excise levy. If the activity involved was considered to be manufacture, then the same was eligible for exemption under Notification No. 67/95-C.E. 6. In the appeal before the Tribunal, the appellants submitted that the network of MSC, BSC and BTS considered as an excisable goods constituting transmission apparatus for radio telephony was located in various districts in the State of Tamil Nadu and no complete system of MSC, BSC and BTS was located in the jurisdiction of the adjudicating authority. The imported ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Construction Co. (P) Ltd., 2003 (151) E.L.T. 3 (S.C.) = 2003 (54) RLT 125 (S.C.), wherein it was held that erection of ropeway system for carrying passengers by trolley system was not a manufacturing activity. They also cited para 4 of the Board's Circular No. 49/11/2002-ST dated 18-12-02, in support of their plea that the impugned activity did not in lye manufacture. The circular reads as follows: "Circular No. 49/11/2002-ST. dated 18-12-2002 In para 4(iv) it has been categorically clarified that integrated plants/machines, as a whole, may or may not be "goods". For example. plants for transportation of material (such as handling plant) are actually a system or a network of machines. The system comes into being upon assembly of its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s with intent to evade payment of duty. Penalty could not be imposed as the appellant was not guilty of dishonest conduct or had acted in conscious disregard of its statutory obligations. 9. We have carefully gone through the records and considered the submissions made by both sides. In the instant case, the appellants had imported various equipment comprising the Transmission Apparatus for Radio Telephony network such as MSC, BSC and BTS and installed the same at various locations spread over several districts. The adjudicating authority has found that the Mo bile Switching Centre, the Base Station Controller and the Base Transceiver Station imported by Aircel installed in several districts in the State by ECPL are excisable goods. It ..... X X X X Extracts X X X X X X X X Extracts X X X X
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