9911796707
TMI Blog2017 (3) TMI 512X X X X Extracts X X X X X X X X Extracts X X X X ..... t ORDER Per Ramesh Nair 1. The appellant is engaged in the manufacture of excisable goods, viz., motor vehicle parts and electric components falling under Chapter 87 & 85 of CETA, 1985. They are also trading of excisable goods as a registered dealer and both the activities are being carried out in the same premises. A show-cause notice was issued proposing (a) to demand inadmissible Cenvat Cred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt filed appeal before the Commissioner (Appeals). The learned Commissioner (Appeals), dropped the demand of Cenvat Credit of Rs. 3.38 lakhs. However, demand of Cenvat Credit of Rs. 1,44,747/- and demand of Central Excise duty of Rs. 3.69 lakhs totaling Rs. 5,14,457/- was confirmed and also upheld the corresponding penalty of Rs. 5,14,457/-. Therefore, the appellant is before us. 2. Shri S.B. Awa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng of the bought out items does not amount to manufacture in respect of the goods of Chapter 87 and 85 of CETA. He produced some samples package of bought out parts. In support, he placed reliance on the following judgements: a) XI Telecom Ltd. 1999 (105) ELT 263 (AP) b) TI Diamond Chain Ltd. 2000 (126) ELT 790 (Tribunal) maintained by the Hon'ble Supreme Court as reported in 2001 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terates the findings in the impugned order. 4. We have carefully considered the submissions made by both sides and perused the records. 5. We find that as regards the demands of Rs. 1,44,747/-, the appellants have already paid the amount and not contesting the same. As regards the penalty corresponding to the said amount, we find that the appellant has inadvertently passed on the credit on the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ount to manufacture. Therefore, the activity of packing of various parts into small retail packing and sale thereof to various customers does not fall under the purview of manufacture. Accordingly, no demand can be confirmed. We, therefore, set aside the demand of Rs. 3.69 lakhs. Consequently penalty is also set aside. 6. As per our above discussion, the impugned order is modified and the appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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