2011 (4) TMI 904

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....eligible for SSI exemption, investigation was taken up and after scrutiny of documents, recording of statements, etc. a show-cause notice was issued proposing to demand duty on the industrial valves with brand names of others, cleared by them, proposing confiscation of seized goods and imposition of penalty. Proceedings were dropped by the original adjudicating authority on the ground that appellants had, in fact, repaired and reconditioned old valves and the process did not amounts to manufacture and when the process did not amounts to manufacture the question of payment of duty did not arise. On an appeal filed by the Revenue, the learned Commissioner (Appeals), in the impugned order, set aside the original adjudicating authority's decisi....

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....ic fans by replacing parts, rewinding of motors, etc. does not amount to manufacture.   3. The learned DR submitted that in this case the appellants had actually floated a dummy firm. Further, old valves which were purchased underwent some process which was undertaken in the case of their other inputs. Further, he also submits that appellants have affixed the brand names of other companies and further, in order to avoid payment of duty, they had set up a sister-company to affix brand names.   4. We have considered the submissions made by both the sides. There is no dispute about the fact that the appellants had purchased old and used industrial valves which underwent processes such as machining, welding, drilling, grinding, gas ....

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.... M/s. Namita Gautam reported in 2002 (141) ELT 840 (T), it has been held by Cegat that it is a settled law that affixing of brand name does not change the character of the goods manufactured. The Tribunal followed the reasoning given by Bombay High Court in the case of Bush India Ltd. that the manufacturer was complete even without the brand name being put on the specified goods and that the marketing of the specified goods under the trade name made no, difference as they still remain the same article irrespective of the name under which they are sold. These decisions have been examined by the adjudicating authority in reaching his findings that the processes conducted on the old Industrial valves did not amount to manufacture, even when br....