Manufacture in computer assembly dispute stayed as the duty and penalty waiver order was suspended pending further proceedings

Assembling CPU and peripherals into a computer system was treated as the central question on manufacture, with the accompanying stay application focusing on whether the order granting total waiver of duty and penalty should remain operative. The CEGAT, Mumbai allowed the stay application and stayed the operation of the impugned order, leaving the duty and penalty waiver order suspended pending further proceedings.

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Issues: Whether assembling CPU and peripherals into a computer system amounted to manufacture, and whether the impugned order granting total waiver of duty and penalty deserved stay.

Outcome: The application for stay was allowed and the operation of the impugned order was stayed.

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