TaxTMI 
TaxTMI 
2014 (9) TMI 770
X X X X Extracts X X X X
X X X X Extracts X X X X
....2013 dated 22.11.2013 passed by the Commissioner of Central Excise, Thane-I. Vide the impugned order, the adjudicating authority has confirmed the duty demand of Rs. 3,33,01,675/- along with interest thereon and also imposing equivalent amount of penalty on the appellant M/s Jost's Engineering Company Ltd. Further, goods valued at Rs. 1,23,36,538/- which was seized vide Panchanama dated 4.5.2013 has been confiscated and a redemption fine of Rs. 12.5 lakhs has been imposed in lieu of confiscation. A penalty of Rs. 15 lakhs and Rs. 50 lakhs have been imposed on the General Manager of the appellant firm and on the appellant firm under Rule 26 of the Central Excise Rules, 2002. Aggrieved of the same, the appellant is before us. 2. The fa....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ter 84 and 87 for the period May, 2008 to Feb, 2013. The said notice was adjudicated by the impugned order and the demands were confirmed. Aggrieved of the same, the appellant is before us. 3. The learned Counsel for the appellant made the following submissions:- The appellant procures these parts either locally or from abroad and these parts are put in a plastic bag and goods are cleared and sold to the customers. In the plastic bag, there is a sheet of paper indicating the invoice no., item no., customer's name, purchase order no. and date, description of the goods, quality etc. the plastic bags, in which the goods are packed and sold are not un....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d if the value of these imported parts cleared as such are excluded, the duty demand would further come down by Rs. 91 lakhs and Rs. 21 lakhs approximately. It is also pointed out that for the period from 1.4.2004 to 7.4.2011, the duty demand is not sustainable as the word 'vehicle' was substituted in entry 100 and 100A in Third Schedule w.e.f. 8.4.2011 by Finance Act, 2011 retrospectively and it is an admitted position that in respect of retrospective amendment made in law, the question of invoking the extended period of limitation would not arise and if the demands for the above period is excluded the net duty liability would be only about Rs. 23 lakhs approximately. In view of the above, the learned Counsel pleads for grant of st....
X X X X Extracts X X X X
X X X X Extracts X X X X
....vity of inspection and putting the parts in plastic bag giving the details of the parts and vehicles to which the part should be used would amount to making the product marketable to the consumer and, therefore, the activity undertaken by the appellant would amount to 'manufacture' as defined under Section 2(f)(iii) of the Central Excise Act, 1944. In view of the above, it is urged that the appellant be put to terms. 5. We have carefully considered the submissions made by both the sides. 5.1 As regards the appellant's contention that the activity undertaken by them does not amount to manufacture, we observe that in respect of the same activity undertaken in their factory at Thane on the same goods, the appellant is treatin....
X X X X Extracts X X X X
X X X X Extracts X X X X
....to the appellant as to why they are procuring these parts and distributing it to their customers. In reply thereof, it was stated that these parts are difficult to obtain and once these are procured by the appellant and delivered to the customer, the customers believe the parts to be genuine and the same are supplied with the warranty cards. If that be so, the activity undertaken by the appellant improves the marketability of the product. Thus any activity, which improves the marketability of the product by undertaking labeling and packing etc. would definitely amount to 'manufacture'. 5.2 As regards the question whether extended period of time could have been invoked in the present case, this is an issue which needs to be gone a....