TMI Blog2017 (2) TMI 834X X X X Extracts X X X X X X X X Extracts X X X X ..... e. The activities of assembling of various components of computers into a working computer system will not amount to manufacture and hence are not liable to payment of excise duty - Consequently there is no need to discuss the issue of brand name and SSI benefit - appeal allowed - decided in favor of appellant. - E/1023/2006-DB - Final Order No. 20215 / 2017 - Dated:- 7-2-2017 - Shri S. S. Garg, Judicial Member And Shri V. Padmanabhan , Technical Member Mr. Raghavendra B. Hanjer, Advocate For the appellant Mr. Mohammed Yousuf, AR For the respondent ORDER Per V. Padmanabhan The appellant was engaged in the trading of computer systems and accessories under the brand and style (NOVO). The Central Excise officers v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... OVO have been seized. (iii) The brand name NOVO belongs to Novo Computers Pvt. Ltd., which is a firm, in which the brother of the proprietrix is the Managing Director. There is nothing on record to suggest that M/s. NOVO Computers Pvt. Ltd. has objected to the use of the brand name NOVO by the appellant. He also challenged the demand on the ground of limitation. 4. Learned DR supported the impugned order. He argued that it has been held in many decisions that assembly of various components of computer include the computer system brings into existence new product falling under 8471 and will be liable to payment of excise duty. He also argued that the appellant will not be entitled to the SSI benefit since the relevant Notification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... form and machines for processing such data, not elsewhere specified or included 16% Further the relevant chapter note to Chapter 84 dealing with the classification of goods under chapter 84.71 is also reproduced below:- 5(a) For the purpose of heading No.84.71, the expression automatic data processing machines means:- (i) Digital machines, capable of (1) storing the processing programme or programmes and at least the data immediately necessary for the execution of the program; (2) being freely programmed in accordance with the requirements of the user; (3) performing arithmetical computations specified by the user; and (4) executing, without human intervention, a processing programme which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... riate to their respective functions or, failing that, in residual headings. By reference to the above chapter notes, we note that each of the component parts such as CPU, hard disc, monitor etc. would form a separate unit of an ADP machine referred to in Chapter Note 5(b). Each of these units will also be classified under 84.71 and when the various units are connected together to perform the function of ADP machine, it will function in the form of a system which should have all the features of the machines referred to in Note 5(a)(i). Thus, we have the example of a lap top or a notebook computer which will be a ADP machine in which the various components are built in and functioning as a system. We also have the example of a desk top c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, since the network does not bring into existence goods with a distinct new name, character and use. We are of the view that the above clarification, though not strictly applicable to the present facts of the case, however, the analogy can be adopted. The Tribunal in the case of CCE, Ahmedabad Vs. Macro Tech P. Ltd. [2008(231) ELT 59 (Tri. Ahmd.)] has taken the view that buying various computer parts and installing the same by assembling will not amount to manufacture. This has been further followed in certain other judgments. On the other hand, Revenue has pointed out several decisions wherein the Tribunal has taken a contrary view. However, we find that those decisions are all prior to the 2008 decision of the Tribunal, except the decisi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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