TaxTMI 
TaxTMI 
2010 (8) TMI 42
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.... 22 & 23/2005 dated 28-4-2005. As such, all these four appeals and the cross-objection relate to the same impugned order passed by the adjudicating Commissioner. 3. We have heard both sides. 4. Shri Sumit Kumar, learned DR appearing for the department states that the department has come in appeal against the impugned order under which the Adjudicating Commissioner has held part of the goods to be not manufactured goods and has held part of the goods to be classifiable under Heading 4901.90 chargeable to nil rate of duty. It is the contention of the department that the impugned goods are classifiable under Heading No. 8306 and chargeable to duty. Consequently, the department also seeks levy of interest and imposition of penalty. 5. The Adjudicating Commissioner has dropped the duty demand of Es. 6,58,95,796/- and has confirmed a small amount of duty of Rs. 1,23,774/- in respect of desk top clocks holding the same to have been manufactured by the respondent/appellant-assessee and has also imposed an equal amount of penalty of Rs. 1,23,774/-. In addition, he has imposed a penalty of Rs. 25,000/- on Shri N.K. Taneja, Managing Director in the respondent/appellant company. The a....
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....ufacturing activities. Shri N.K. Taneja, MD of the unit and Shri Nthar Ranjan Das, Manager (Distribution and Quality Control) inter alia confirmed the activities carried on by their company in their respective statements recorded under Section 14 of the Central Excise Act, 1944. (iv) Statement of Shri Nihar Ranjan Das was recorded on 10-10-2003. He inter alia stated that he was working as Manager (Distribution and Quality Control); that the company was a private limited company engaged in assembling acrylic frame, metallic frame, glass frame, car frame, wooden frame etc. Regarding assembly process of their major products, he stated that: (a) Car frame - foil was placed between two pieces of acrylic car frame and finally push fitted. In few car frames, the foil was first laminated and then fixed in the car frame. (b) In case of glass frames, the foil was first fixed between two glass pieces, which in turn was fixed in the frame. (c) Acrylic frame - foil was first fixed in the top part of acrylic frame. Then the bottom part was fixed with the screw. (d) Metallic frame - The foil was first fixed inside the golden tickli and then fixed with metallic part of the frame. ....
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....als of God having little or no utility value; that they purchased Diviniti products from the party and sold them to their customers, which included mainly gift shops and car accessory shops. (vii) In response to the summons issued to Shri N.K. Taneja, Managing Director of TML, Shri Vipin Aggarwal, Sr. Finance Manager, duly authorized by Shri N.K. Taneja appeared on his/company's behalf and his statement was recorded on 22-1-2004. He stated that he was working as Sr. Finance Manger with TML for the last 4 years and he was well aware of the day to day affairs as well as the policies of the company; that TML is dealing in Diviniti products which were mainly gift items like visuals of deities, certificates, car accessories, glasses, customized products etc., which were mainly used for decorative purposes having little or no utility value; that they procured different components viz, nickel foil, frames, adhesives, screws, packing material etc. from different sources and assembled the same at their premises at 302, Empire Plaza, Suitanpur, New Delhi with the help of tools and skilled manual labour; that as a result of the assembly 'Divinifi products' came into existence which were....
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....dials) were affixed on the faces of the clocks and were packed in the manner discussed above. 7. It has been argued on behalf of the Department that the impugned goods manufactured by TML are to be held to be excisable and charged to duty. The majority of the products namely pictures, certificates, mementoes etc. made from imported gold plated nickel foil and appropriately framed with the help of various indigenously procured materials, machines installed in the premises of TML are marketable goods, sold in gift shops and making of these products satisfied the test of manufacturing and hence are required to be charged to duty. It is the further contention of the Department that the adjudicating Commissioner has wrongly held these items to be products of the printing industry and non- dutiable. 8. The main contention advanced on behalf of TML are that firstly the processes undertaken do not amount to manufacturing and secondly the impugned goods are not classifiable under the Heading 8306 as claimed by the Department. They are also challenging the small amounts of duty and penalties confirmed by the adjudicating Commissioner. 9. We have gone through the rival submissions as....
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....23,774/- and has imposed appropriate penalties and has also ordered for payment of interest giving option to TML to pay 25% of the penalty as required under Section 11AC of the Central Excise Act, 1944. We find no reason to interfere with his order in regard to the desk top clocks as the same is in accordance with law. 10. As regards other articles such as pen holders, pen stands, visiting card holders, jewellery boxes etc., the adjudicating Commissioner has come to the conclusion that such articles are locally bought as such by TML and that they have only in-laid or over-laid the gold plated nickel foils on these articles and further that even though such process has added value to the goods, it cannot be said that any new article has emerged as a process of such in-laying or over laying. We are of the view that the conclusion reached by the adjudicating Com missioner in this regard cannot be faulted with as no new product emerges as a result of in-laying or over-laying of gold plated nickel foils on such articles. 11. Coming to the main category of products such as framed pictures, certificates and mementoes etc., the manufacturing process involved is not in dispute. Both s....
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....ommissioner has classified, the impugned 'Diviniti products' under Heading 4901.90 chargeable to nil rate of duty. The Department's claim is that the impugned goods require classification under Heading 8306.00. We reproduce below the two competing entries :- (i) Heading No. Sub- heading No. Description of goods Rate of Duty (1) (2) (3) (4) 49.01 Printed books, newspapers, pictures and other products of the printing industry; manuscripts, typescripts and plans 4901.10 - Transfers (decalcomanias) 16% 4901.20 - Maps and hydrographic or similar charts of all kinds including atlases, wall maps, topog raphical plans and globes, printed Nil 4901.90 - Other Nil (ii) Heading No. Sub- heading No. Description of goods Rate of Duty (1) (2) (3) (4) 83.06 8306.00 Bells, gongs and the like, non-electric, of base metal; statuettes and other ornaments, of base metal; photograph, picture or similar frames, of base metal 16% In our view, the impugned goods made from gold plated nickel foils cannot be classif....