TaxTMI 
TaxTMI 
2017 (2) TMI 665
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....sembled by the assessee by interconnecting the various components resulting in the emergence of computer systems. The department was of the view that assembling the various components of the computer results in emergence of new product i.e. Computers, on which excise duty was liable to be paid. The assessee, on the other hand, argued that they were engaged in procuring various components of computers and supplying these to various customers as per the configuration required by them. According to the arguments raised by the assessee, this amounts to second sale, on which no excise duty is liable to be paid. 2. On conclusions of investigations, show-cause notice dated 18.8.1999 was issued by the department, which was originally adjudicated vide the Order-in-Original dated 4.4.2000 confirming the demand of the excise duty. Aggrieved by this order, the assessee went in appeal before CEGAT and the CEGAT vide the Final order dated 12.2.2002 remanded the matter to the adjudicating authority to consider the plea made by the assessee that the principles of natural justice were not complied with since copies of several documents relied upon in the show-cause notice were not supplied to th....
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....ing excise duty. iii. The Department has failed to furnish copies of purchase documents for the period from 25.1.1996 to 31.3.1997 and 7 purchase bills for the year 1997-98 bearing No. 33, 123, 147 293, 593, 1468 and 5134. The above documents have been listed as relied upon documents in the show-cause notice but the Department has failed to supply the same. In the impugned order, the Commissioner has recorded that these documents are also not traceable with the Department. For failure to supply these documents, the demand should not be enforced upon them. iv. On account of non-supply of above documents, the learned advocate contended as follows: * The assessees contention is that they are engaged in the activity of trading. This can be demonstrated only by showing the details of purchase of various components and accessories, computers and further by showing that these have been sold on payment of sales tax to buyers as second sale. Further, the purchase bills would show the duty paid/bought-out nature of the components which are crucial for establishing their case of trading. v. The learned advocate argued that the demand is hit by limitation. T....
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....sessee himself. He further referred to the correspondences with the department had with the Deputy Commissioner of Commercial Taxes from which it emerges that purchase documents for the year 1996-97 and 1997-98 were already in possession of the assessee and have been used for filing the commercial tax returns. Accordingly, he submitted that the assessee cannot be said to have been prejudiced in their defence. 5.2 On the issue of limitation he submitted that the date of knowledge of the department is not of any significance in deciding the time limit. The show-cause notice has been issued within a period of 5 years from the date on which the alleged manufacture has taken place. Since the assessee has suppressed the fact of manufacture from the department, they will be entitled to invoke extended period of limitation. He relied upon the decisions of M/s. Mehta & Co.: 2011-TIOL-17-SC-CS and Neminath Fabrics Pvt. Ltd.: 2010 (256) ELT 369 (Guj.). 6. The allegation made by the Revenue after investigation into the affairs of the assessee is that they have procured various component parts of computer such as CPU, mother board, monitors, hard disk, mouse etc. and assembled them into w....
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.... elements; (iii) Hybrid machines consisting of either a digital machine with analogue elements or an analogue machine with digital elements. (b) Automatic data processing machines may be in the form of systems consisting of a variable number of separate units. Subject to paragraph (e) below, a unit is to be regarded as being a part of a complete system if it meets all of the following conditions: (i) It is of a kind solely or principally used in an automatic data processing system; (ii) It is connectable to the central processing unit either directly or through one or more other units; and (iii) It is able to accept or deliver data in a form (codes or signals) which can be used by the system. (c) Separately presented units of an automatic data processing machine are to be classified in heading 84.71. (d) Printers, keyboards, X-Y co-ordinate input devices and disk storage units which satisfy the conditions of paragraphs (b)(i) and (b)(ii) above, are in all cases to be classified as units of heading No.84.71. (e) Machines performing a specific function other than data processing and incorporating or working....