TMI Blog2007 (7) TMI 63X X X X Extracts X X X X X X X X Extracts X X X X ..... duty not attributable and accordingly penalty set aside - Appeal Na. E/1127/2005 - Final Order No. 823/2007 - Dated:- 4-7-2007 - [Order per: P.G. Chacko, Member (J)]. - The Commissioner, in the impugned order, demanded duty of over Rs. 58.00 lakhs from the appellants in respect of watches for the period 1-3-2003 to 10-12-2003 and imposed on them equal amount of penalty. These watches were imp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tribunal's decision in P.T.C. Industries Ltd. v. CCE, Jaipur-I - 2003 (159) E.L.T 1046 (Tri.- Del.), wherein a demand of central excise duty was set aside by the Tribunal upon finding that Modvat credit of such duty would be available to the assessee's sister unit to which the goods were cleared. Learned SDR, on the other hand, submits that the substantive question to be settled is whether the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st-import activity undertaken by the assessee on the goods amounted to 'manufacture'. This finding of learned Commissioner is based on Section 2(f)(iii) of the Central Excise Act and the same is beyond question. However, learned Commissioner ought to have enabled the assessee to honour the demand of duty by way of debit in Cenvat account. The impugned order itself has noted that Cenvat credit of C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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