1995 (8) TMI 165

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....  "On hearing learned counsel and on going through the memo of appeal I find that the department has case packing, binding of components, testing and affixing of labels does not by themselves bring out a product. All the activities are after the product has taken shape, however, when the goods are resold. They are with a new guarantee card and therefore a resale of a old item would amount to manufacture within the meaning of Section 2(f) of the Central Excises and Salt Act, 1944. With this in view I accept department appeal and set aside the impugned order. Appeal is accordingly disposed off. (PREM V.P.SINGH ) COLLECTOR (APPEALS)" 2.  These findings have been seriously assailed before us. The Additional Collector a....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... 173B, 173C, 173F, 173G and 226 of the Rules. 4.  The Additional Collector had examined the statements recorded from the appellant's staff and also their explanation, that they are not manufacturing any new fans but were only repairing and reconditioning them and making them serviceable, by replacing parts or rewinding the fans. They were reaffixing the number Plates at random, in some cases old number Plats were not suitable for reuse, some rejected fans were not serviceable and as such these had been split up into components. The Additional Collector after detailed scrutiny of all the records upheld the appellants contention and dropped the proceedings, which has unfortunately been reversed, without discussion or application of mi....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....bsp;"manufacture" includes any process - (i) incidental or ancillary to the completion of a manufactured product, and (ii) which is specified in relation of any goods in the Section or Chapter notes of the Schedule to the Central Excises and Salt Act, 1985 as amounting to manufacture, and the word "manufacturer" shall be construed accordingly and shall include not only a person who employs hired labour in the production or manufacture of excisable goods, but also any person who engages in their production or manufacture on his own account." 7.  Therefore, the activity should result in completion of a manufactured product. A manufactured product has always to be construed in terms of any goods in the Section or Chapter Notes....