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TMI Blog2024 (11) TMI 714X X X X Extracts X X X X X X X X Extracts X X X X ..... eries falling under Chapter 84 of the Central Excise Tariff Act, 1985. They had manufactured and cleared one precision CNC Universal Turning Machine (CNC lathe) from their Belgaum Unit to M/s. Kunakeshwar Springs Pvt. Ltd., Pune vide invoice No.709 dated 02.02.2006 on payment of appropriate duty of Rs.2,45,551/-. The customer rejected the said goods which was received by the appellant against their Invoice No.EX-025 dated 17.07.2008. The appellant had availed credit of the duty earlier paid under Rule 16(1) of the Central Excise Rules, 2004 as if it is an input. Later, the appellant had cleared the goods after making necessary changes by adding components on payment of duty on the transaction value of the said machine at the rate applicable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the show-cause notice was only repaired is not correct but it is manufactured; therefore as per Rule 16(2) of the Central Excise Rules, it attracted duty which was paid on the basis of transaction value and the rate of duty prevailing at the time of its clearance. In support, they have referred to the following judgments:- a. Indian Aluminium Co. Ltd. Vs. CCE [2008(01) LCX 0468-In the High Court of Kerala] b. Hot Line CPT Ltd. Vs. CCE, Indore [2015(318) ELT 141 (Tri.)] c. Deepak Nitrate Ltd. Vs. CCE, Rajgad [2016(335) ELT 254 (SC)] d. CCE, Vapi Vs. Castrol India Ltd. [2016(339) ELT 265 (Tri.)] 3.2. On the issue of availing of cenvat credit of Rs.3371/-, the learned advocate further submits that it was taken on the demurrage charges ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the lathe machine cannot be termed as process of repairing of rejected machine but results into manufacture. Also, I find that the said goods has been cleared to another customer after customising it according to his specifications. Also, on going through the list of materials appended with the appeal paper book, it is seen that certain features of the earlier machine after dismantling it had been added and as a new commodity with distinct use had emerged as a result of the processes; therefore, bringing out a new machine. Hence, the processes resulted into manufacture. In these circumstances, the payment of the duty on the transaction value of remanufactured machine is justified. Regarding the issue of admissibility to credit on demurr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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