TMI Blog2016 (1) TMI 477X X X X Extracts X X X X X X X X Extracts X X X X ..... pellant, then it cannot be said that the goods exported by the appellant is without carrying out manufacture activity. Commissioner have not given any emphasized on the aspect of re-packing and labelling/re-labelling as manufacture. The Commissioner has also not discussed in his order whether the re-packing and labeling has taken place and in what manner. - Commissioner has not dealt with submission the made by the appellant on the issue of Revenue neutrality - Matter remanded back. - E/85670 and 85669/2013-Mum - Final Order Nos. A/2169-2170/2015-WZB/CB - Dated:- 16-7-2015 - Shri P.K. Jain, Member (T) and Ramesh Nair, Member (J) Shri Yogesh Patki, Advocate, for the Appellant. Shri Rakesh Goyal, Additional Commissioner (AR), for the Respondent. ORDER [Order per : Ramesh Nair, Member (J)]. - These appeals are directed against order-in-original No. 14/COMMR/M-III/WLH/2012-13, dated 21-12-2012 passed by the Commissioner of Central Excise, Mumbai-II. 2. The fact of the case is that the appellant M/s. Keva Fragrances Pvt. Ltd. (KFPL) is 100% export oriented unit engaged in the manufacture of Perfumes and fragrances falling under CETH 330290. The appellant h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as such. In order to verify whether they had manufactured the raw material shown in their manufacturing register, the appellant on enquiry vide Range office letter dated 7-9-2010 informed the percentage of utilization of the said inputs. Vide their letter No. KFPL/C.Excise/2010-11, dated 15th Sep, 2010 also stated that products mentioned in their said letter 15 Sep, 2010 are not manufactured by them. It is contended in the show cause notice that it appears from the letter dated 1-10-2010 to the appellant and their reply dated 27-10-2010 thereto, that the approval accorded to them by Dy. Commissioner, SEEPZ for broad banding of items of manufacture is namely perfumery compound allowed in terms of LOI No. 783(81), dated 30-12-1981 as amended, whereas the goods exported (as per Annexure A to SCN) are those goods which are inputs procured duty free, through imports as well as indigenously, goods are exported as such without being used in the manufacture of export goods which would amount to trading activity which is strictly prohibited vide para 6.1 of FTP 2004-09 and 2009-14. It was further contended that : (i) Notfn. No. 52/2003-Cus. states that, the goods imported und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rial imported under Notification No. 52/2003-Cus., dated 31-3-2003 and indigenously procured under Notification No. 22/2003-C.E., dated 31-3-2003 therefore, the vital condition has been violated consequently notifications were denied and customs duty and excise duty was confirmed. He submits that right from the beginning they have been submitting that even goods which have been alleged as removal of goods as such the appellant have admittedly carried out activity of repacking and re-labelling of the fragrances and exported the same. He submits that as per the EXIM Policy, manufacture was not restricted to activity as stipulated under Section 2(f) of Central Excise Act, 1944, but definition of manufacture in EXIM Policy is much wider and the same includes the activity such as repacking and re-labelling, etc. Therefore, in the case of 100% EOU which is governed by the EXIM Policy, definition of manufacture provided under the EXIM Policy shall be adopted and not manufacture as provided under Section 2(f) of Central Excise Act, 1944. Therefore, the charges of the show cause notice become Null and void, once it is accepted that the appellant have carried out the activity of repacking an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in made categorical submission that goods indigenously procured and imported were exported after re-packing and labelling and the activity of repacking/labelling is amounting to manufacture as per the EXIM Policy. In this regard, we have gone through the definition of manufacture provided under the EXIM Policy, which is reproduced below : Manufacture means to make, produce, fabricate, assemble, process or bring into existence, by hand or by machine, a new product having a distinctive name, character or use and shall include processes such as refrigeration, repacking, polishing, labeling, reconditioning repair, remaking, refurbishing, testing, calibration, reengineering, manufacture, for the purpose of FTP, shall also include agriculture, aquaculture, animal husbandry, floriculture, horticulture, pisciculture, poultry, sericulture,, viticulture and mining. From the above definition, it is very clear that the manufacture means not only covered the activity which brings into, existence new product but it also includes independent activity such as re-packing, lebelling, etc. From the above definition it is very clear that if the imported goods or indigenous goods procured by th ..... 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