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TMI Blog2024 (10) TMI 1251X X X X Extracts X X X X X X X X Extracts X X X X ..... in the manufacture of Modems which they clear for demo purposes on payment of duty. After receiving the said Modems, they avail cenvat credit under Rule 16(1) of the Central Excise Rules, 2002. The Modems are treated as raw materials and subjected to various processes as applicable to Modems and thereafter cleared on payment of duty on the transaction value of the said Modems. The Department disputed the activities carried out by the appellant as not amounting to manufacture; hence demanded differential duty as per Rule 16(2) of the Central Excise Rules, 2002 amounting to Rs.2,20,136/- for the period December 2006 to November 2007; Rs.4,47,194/- for the period July 2008 to December 2008 and Rs.1,43,807/- for the period January 2009 to Decem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ard both sides and perused the records. 6. The short question involved in the present appeals for determination is whether the processes carried out by the appellant i.e. visual inspection, rectification of defects, complete functional testing, quality control etc. result into manufacture and accordingly the appellant is required to discharge duty on the transaction value as per Rule 16(2) of the Central Excise Rules, 2002. 7. I find that this Tribunal in the appellant's own case analysing the processes undertaken by them on the imported Modems which are similar to that one now applied to the indigenous goods, held as under:- 10. A careful analysis of the activities undertaken by the appellant from the dealers premises, it reveals that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same for final consumption" as in the latter case, the person purchases the product for his own consumption and in that case, he expects the product to be suitable for his own purpose and the consumer might purchase a product having marketability, which it did not possess earlier. 19. Therefore, the phrase "marketable to the consumer" would naturally mean the marketability of the product to "the person who purchases the product for his own consumption". Hence, the argument of the appellant that as the product was already marketable, the provisions of Chapter Note 10 of Chapter 28 of the Act would not be attracted, will have to be rejected." 11. The Learned Commissioner in the impugned order dt. 30/11/2011 (appeal No.ST/547/2012) obs ..... X X X X Extracts X X X X X X X X Extracts X X X X
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