TaxTMI 
TaxTMI 
2000 (10) TMI 484
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.... 2. Shri Sudhakar Awasthi, Representative of the Appellants, submitted that they placed order for the purchase of 400 fax machines in knocked down condition with M/s. Samsung Ltd., Seoul; that the consignment was received under Bill of Entry No. 103934 dated 30-6-1992; that in their letter dated 24-6-1992, they requested to allow the clearance of machines without payment of excise duty since consequent to the assembly the resultant product would have the same identity namely facsimile machine which had been subjected to both the duty of Customs; that the Commissioner, under the impugned Order, has held that the activity carried out by them over the imported consignment to make it complete facsimile machine amounts to manufacture and Ce....
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....e or finished articles; that in the instant case there was no conversion of any article but only assembly which was done with an object to restore the machine to its original shape which was before it was dismantled and imported, that the instant case is squarely covered by the case of Walchand Nagar Industries v. C.C.E., Pune, 1995 (79) E.L.T. 485 (T) wherein it was held "that the process carried out by the appellants upon the complete, machining centre imported in C.K.D. condition do not amount to manufacture as no new product bearing a new or different character or use emerge as a result thereof." He also relied upon the decision in Xeroxgraphics Systems Ltd. v. Collector of Customs, 1995 (80) E.L.T. 337 (T) in which it was held that ass....
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....70 as per Appellants own letter dated 19-8-1992 and all the items procured indigeneously were not packaging material. He pointed out that chord purchased locally is not a packaging material but an essential item. He relied upon the decision in CCE v. Jay Engineering Works Ltd., 1989 (39) E.L.T. 169 (S.C.) wherein even nameplate to be affixed on fan was considered to be an input and essential ingredient. He, therefore, contended that the fax machine is not marketable without all the raw materials procured indigenously; that the ratio in the cases of Walchand Nagar and Indian Xeroxgraphics System is not applicable to the facts of the present matter. 5. In reply, the ld. Representative of the Appellants relied upon the decision in Eure....
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....t having the essential character of the complete or finished article (including 'blank', that is an article, not ready for direct use, having the approximate shape or outline of the finished article or part and which can only be used, other than in exceptional cases, for completion into the finished article or part), into complete or finished article shall amount to 'manufacture'." 7.1  It is apparent from the wordings of this Note that if a product which is incomplete or unfinished is completed or finished, the process for making it complete or finished will amount to manufacture. According to Webster IXth New College Dictionary, Conversion means "something converted from one use to another." The Appellants are converting CKD kits ....
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.... Central Food Technological Research Institute and Environmental Services SGS India Ltd. - that Aquaguard without prefilter not only filters the water but also purifies it. Accordingly, the Tribunal held that "it is a complete unit in itself as filtering and purification are concerned. To have its efficacy increased and to give a longer lifetime to the activated carbon column fixed on the left side of the equipment, the assessee canvases for a prefilter to be added to it....... They take the characterstics of accessories" In the light of these facts, Tribunal held that Note 6 to Section XVI has no application. It is not the case of the Appellant that the components imported by them could be used as fax machine without the process of assembl....