2007 (7) TMI 63

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....over Rs. 58.00 lakhs from the appellants in respect of watches for the period 1-3-2003 to 10-12-2003 and imposed on them equal amount of penalty. These watches were imported and cleared on payment of duties of customs (including CVD) on MRP basis and, subsequently, they were repacked and sold to customers after affixing MRP sticker. The above demand of duty of excise is based on the finding that t....

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....able to the assessee's sister unit to which the goods were cleared. Learned SDR, on the other hand, submits that the substantive question to be settled is whether the activity of repacking followed by affixture of MRP sticker on the imported watches amounted to 'manufacture' and, if so, what would be the correct classification of the goods so manufactured. It is urged that this question needs to b....

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....sioner ought to have enabled the assessee to honour the demand of duty by way of debit in Cenvat account. The impugned order itself has noted that Cenvat credit of CVD paid on the imported watches is admissible to the assessee. It appears from the records that this credit exceeds the amount of duty of excise demanded. In the circumstances, we are of the view that the assessee shall pay the duty of....