TaxTMI 
TaxTMI 
2000 (2) TMI 309
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....i Deepak Kumar, SDR, for the Respondent. [Order per: J.H. Joglekar, Member (T)]. - The appellants in this case manufactured domestic electric mixers and grinders. In the manufactures of such machines, plastic moulded parts were used. The appellants purchased plastic powder and sent it to the job workers for conversion into moulded articles. In doing so, they adopted two different methods. For s....
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....taken by the appellants were processes incidental or ancillary and therefore construed to be processes of manufacture. It was alleged that in sending their goods to depots without payment of duty, the assessee had fraudulently evaded duty correctly leviable. After hearing the assessees the Collector of Central Excise passed the impugned order confirming duty amounting to Rs. 1,80,509.19 and imposi....
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.... is that not amounting to manufacture. Shri R.J. Parakh at the time of personal hearing referred to Clause (b) of sub-clause (2) of the said Rule, in showing that the provisions permit manufacture of fully finished intermediate products also. 6. The entire conviction of the Collector is based on the observation that the goods received from the job workers were not fully finished in as much a....
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.... to be complete. When the fabrics are in lump-form and where the processor undertakes cutting and folding, there can be addition to the assessable value, on account of these ancillary operations. But where they are performed by the merchant manufacturers the value addition cannot be made for the goods in the hands of the processor. Thus, we do not find force in the logic that these operation admit....