TaxTMI 
TaxTMI 
2007 (5) TMI 45
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....e Commissioner, Chennai-III demanded an amount of Rs. 1,12,84,978/- being the credit availed on Saddle Bracket Absorber, Bracket V Stay and Stabilizer Bracket during the period October'03 to September '04. A penalty of Rs. 10,00,000/- was also imposed in the order-in-original. In the Appeal No. E/232/05, the order impugned is of Commissioner (Appeals), who upheld a similar demand of Rs. 47,89,219/- in respect of machined Elsa Bridge relating to the period September'02 to March03, passed in appeal against the order of the original authority who had dropped the proposal to demand the said amount. Commissioner (Appeals) also imposed a penalty of Rs. 1,00,000/- on the appellants. 2. Facts of the case in brief are that BIL received various in....
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.... Prints (Packaging) Ltd. [ (104) E.L.T. 712 (Tri.)} to buttress his claim that testing and packing amounted to manufacture. He submitted that Rule 16 of the Central Excise Rules, 2002 al lowed credit of duty paid on any goods received in a factory. These could be re moved reversing the credit availed if cleared without undertaking any process of manufacture on them. He also referred us to the manual of supplementary instructions issued by the CBEC, which also provided that the facility of export under bond in terms of Notification No. 43/01-C.E. (NT.) was available to non- duty paid goods received and subjected to processes not amounting to manufacture. He further submitted that BIL had not procured inputs for the purpose of export as such.....
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....processes. 4. He argued that BIL had the option to export the subject goods under claim for rebate of duty as a merchant manufacturer in which case the benefit claimed as duty credit would have accrued to BIL. He also submitted that in terms of Rule 16 of the Central Excise Rules, the appellants were entitled to take credit of the goods received from the job worker on payment of duty and they could clear the said goods on reversing an amount equal to the credit availed, if it was held that the processes of testing and packing did not amount to manufacture. He also submitted that Notification No. 43/2001-CE. (N.T.) allowed them to procure goods without payment of duty, process and export them under bond, even if the process did not amount....
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....tivity of casting pig iron/steel scrap into the automotive parts in their factory as well as the finishing processes. The arguments of the appellants that the processes they under took prior to the export of the goods after receipt from the job workers amounted to manufacture as envisaged in clause 2(f) of the Central Excise Act, 1944, carries considerable force. 7. Export goods would be acceptable to the foreign buyer only after the goods are tested for quality. These had to be properly packed for the purpose of export. Therefore, the goods became marketable only after the impugned inputs were tested and packed. The case law cited by the ld. Consultant had held that inspection of goods was incidental to completion of manufacture. In the....
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....e is defined in Section 2(f) of the Act as including any process incidental or ancillary to the completion of the manufactured product and accordingly packaging the commodity Nylon or Polyester Filament yarn in suitable packages for marketing will be covered in the manufacturing process. Goods used in such process of completion will be goods used in the manufacture of such finished products". Going by the above findings of this Tribunal, automotive parts received by BIL had undergone processes incidental to completion of manufacture before they were exported. We also find that the disputed processes under taken by the appellants are the final steps in a series of processes involved in the manufacture of the impugned goods starting with p....