1998 (6) TMI 254

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....0,000/- on Shri B.J. Bhasin has been confirmed as well as 10 Computer Systems confiscated and allowed on redemption fine of Rs. 2,000/- each. 2. The only points to be considered are : (a) whether activities carried out by appellants amounted to manufacture of Computer Systems; and (b) whether penalty is imposable and is correctly on Shri B.J. Bhasin. An answer to both these questions has more on facts than on law points. Heard ld. Advocate Shri A.K.J. Nambiar for appellants and Shri S. Murugandy, ld. JDR for Revenue. 3. Ld. Advocate argued that all the 32 pieces of Computers alleged to have been manufactured by them were actually purchased from M/s. Pertech Computer Ltd., New Delhi (PCL). Further, they wer....

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....o stretch of imagination can such SKD delivery be held to mean that only parts/components were delivered and not systems themselves. In fact, this technological necessity further makes it imperative for the seller's Engineer to install it at Customer's site. While doing so he checks the appropriateness of the site (e.g. Air conditioning and power source including earth leakage, etc.) and then after unpacking and connecting all these items, he delivers the working system to the buyer. This activity, in IT industry parlance is called "installation". Thus, it is abundantly clear that lnstallation is distinct from manu- facture. That what was done in this case was mere installation is evident from the "Hardware lnstallation Record" of PCL at pa....