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TMI Blog2004 (5) TMI 76X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in the factory of the appellants for repairing of the compressors. Later, the materials required for replacing the scrapped components are received on payment of duty from the factory of the appellant. The Service Centre sends these materials to outside job workers for making the stators. Thereafter the appellant undertook the shaping, varnishing and baking of such stator to fit such stators into the compressor housing. The Collector having felt that the activity of shaping, varnishing and baking done by the appellant on receipt of the stator from the job workers results in manufacture and initiated proceedings for adjudication of tax. 2.The appellant contended that the job workers are manufacturers of sta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aning of 'repairs' as differentiated from the term 'manufacturer' had been examined thoroughly by the Tribunal and, therefore, took the view that the repair, recondition or remake in the process of repair employed would not amount to manufacture. Similarly, in the case of 'Karna', the Tribunal took the view that the defective compressors received if repaired by putting in the necessary parts which had worn out or scrapped then there is no manufacturing activity involved. 5.It is clear that the Tribunal, however, in the order under appeal took the view that while the job workers carried out the job work of winding of the stator, but such stator would not be ready for use in the compressor and would be subject to the processes of press ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of limitation provided under Section 11A is concerned, we do not think that the Tribunal is justified because it was not clear as to whether if any part is used for the purpose of repairing a machinery would amount to manufacture. In fact, the Tribunal on a detailed analysis and after going into several processes carried out by the appellant, came to the conclusion that the stators which were used in the repairing of the compressors involved manufacturing activity. This circumstance itself shows that there was bona fide dispute between the parties in regard to the question whether stators made ready for the purpose of use of compressors involved any manufacturing activity or not. Therefore, to the extent the authorities invoked Section 11A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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