TMI Blog2017 (8) TMI 1267X X X X Extracts X X X X X X X X Extracts X X X X ..... nction of USB port and FM radio came up for consideration by the Tribunal in Logic India Trading Company [2016 (3) TMI 5 - CESTAT BANGALORE]. The Tribunal held that the impugned goods are speakers with added function and the main role of the item, in question, remains amplifying the sound received from outside source or from inbuilt feature. Applying the interpretative rules and section note 3 of Section XVI, the Tribunal held that the product should be classified as speakers only - The product should continue to be classified as speakers. SSI exemption - use of brand name - manufacture - Held that: - mere printing of brand name or packing will not amount to manufacture in case where there is no legal concept of “deemed manufacture”, specifically provided by any provisions applicable to the said product - The applicability of SSI exemption for the products manufactured by GE has to be re-verified with the details submitted by the GE to arrive at duty liability, if any. They have claimed that the turnover during the impugned periods is well below the threshold limit of ₹ 1.5 crores. This needs reverification and confirmation by the Jurisdictional officer. Penalty - Held ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Original Authority dropped penal proceedings against M/s Krishna Technologies and M/s JMD Computers. 2. Revenue filed 6 appeals against the same impugned order contesting non-imposition of penalties under Rule 26 of Central Excise 2002 on 6 individuals for their role in non-payment of duty. Another appeal is by M/s Kaizen Computech Ltd., engaged in trading of multi media speakers in their own brand name, against imposition of penalty under Rule 26. 3. The brief facts of the case are that GE were engaged in manufacture/selling/trading of multi media speakers. GE purchased parts of speakers and assembled them into multi media speakers. These speakers were sold with their brand name EXCEL . They claimed that during the period 2007-2008 to 2010-2011, no duty was payable on these speakers as the value of clearance was within the SSI exemption limit. Multi media speakers with or without FM radio were also received by GE from M/s Krishna Technologies and M/s JMD Computers. GE printed brand names of various buyers on such speakers and packed them for sale. The disputes in the present appeal mainly revolves around two issues :- (a) classification of multi media speakers with FM rad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us 85271900 Other - Radio-broadcast receivers not capable of operating without an external source of power, of a kind used in motor vehicles : 85272100 Combined with sound recording or reproducing apparatus 85272900 Other Other Other 85279100 Combined with sound recording or reproducing apparatus 85279200 Not combined with sound recording or reproducing apparatus but combined with a clock 85279900 Other : Radio communication receivers : 85279911 Radio pagers 85279912 Demodulators 85279919 Other 85279990 Other 5. We note that the Original Authority considered the impugned goods as composite goods and applying note 3 of Section XVI of the Central Excise Tariff Act, held that FM radio present in the amplifier speakers provide a princ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t in 2016 (342) E.L.T. A34 (S.C.). 8. In view of the above legal position, we find the impugned order regarding classification of multi media speakers with added feature of FM radio is not sustainable. The product should continue to be classified as speakers. 9. Regarding the liability of GE for Central Excise duty in terms of Schedule III of Central Excise Act, 1944, we note that heading 8518 (speakers) are not covered in the said schedule for applying the provisions of deemed manufacture . Accordingly, printing of brand name and packing of these products alone cannot be considered as manufacture. We note that GE have manufactured multi media speakers and cleared affixing EXCEL, as their own brand name. They claim that the clearance of such speakers manufactured by them are well within the exemption limit for small scale unit. The Original Authority held that even in the speakers sold with EXCEL brand, the brand QHMPL is mentioned. We note that the brochure shows EXCEL as a registered trade mark. It is indicated that the said speakers are marketed and supported by QHMPL group. We find, no brand name of other person can be said to have been used in such situation. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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