2015 (11) TMI 813

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....facts of the case are as under: 3. The appellant a manufacture of colour picture tubes (CPTs) also used to receive old CPT under Rule 16 of the Central Excise Rules, 2002 and repaired the same. It was importing certain goods under the benefit of exemption under Notification No. 25/1999-Cus. dated 28.2.1999. The said notification provided for concessional rate of Customs duty on goods specified therein when imported into India provided those goods were used for the manufacture of finished goods. As repair of CPTs did not amount to manufacture, such goods used for repairs were not eligible for the benefit of Notification No. 25/1999-Cus. The appellant indulged in mis-statement/suppression of facts in as much as the appellant did not ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....lant was receiving defective CPTs under Rule 16 of the Central Excise Rules. The said rule is reproduced below: "RULE 16. duty on goods brought to the factory. "(1) Where any goods on which duty had been paid at the time of removal thereof are brought to any factory for being re-made, refined, re-conditioned or for any other reason, the assessee shall state the particulars of such receipt in his records and shall be entitled to take CENVAT credit of the duty paid as if such goods are received as inputs under the CENVAT Credit Rules, 2002 and utilise this credit according to the said rules.  (2) If the process to which the goods are subjected before being removed does not amount to manufacture, the manufacture....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....her document relied on by the Commissioner is a letter dated 28-7-1998 of M/s. Texla Electronics Ltd. addressed to the appellants that they had received replacement of broken CPTs. Insurance claim of 71 CPTs according to the Commissioner is an indication that the appellants had been replacing broken CPTs with fresh CPTs in the garb of repairs. It is pointed out by the Learned Counsel for the appellant that in respect of 71 CPT while it was being transported to the appellants factory for repairs an accident occurred en route and the CPTs were totally broken. Since CPTs could not be repaired appellants replaced 71 CPTs, In respect of the above mentioned 71 CPTs appellant had paid central excise duty and interest under intimation to the Superi....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....that there will be loss of electron gun in the process of vaccumisation of CPTs after mounting and sealing of electron guns. The appellant has also contended that the entire demand is barred by limitation." Thus it is evident that the appellant was fully aware that the repair activity undertaken by it did not amount to manufacture and therefore the goods used for repair of CPTs were not eligible for the concessional rate of duty under Notification No. 25/1999-Cus. as that exemption was available only for such goods which were used for the manufacture of finished goods. Therefore, demand of differential duty on such goods which were imported at concessional rate of duty under Notification No. 25/99-Cus. and were used for repair of CPTs is....