TaxTMI 
TaxTMI 
2017 (8) TMI 1267
X X X X Extracts X X X X
X X X X Extracts X X X X
....t/appellant. ORDER Per. B. Ravichandran These appeals are against common impugned order dated 31/01/2013 passed by Commissioner of Central Excise, Delhi - II. The main appellant in this case is M/s Global Enterprises (hereinafter, GE), New Delhi, a proprietary concern of Shri Rishi Baluja. GE were engaged in manufacturing/trading of multi media speakers, with or without FM radio, classifiable under Chapter 85 of Central Excise Tariff. The Central Excise officers conducted search and verification in the premises of GE in April, 2011. Follow up investigations were conducted and statements of various connected persons were recorded. Certain excisable goods were also seized. On completion of the investigation a show cause notice dated ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tion of penalty under Rule 26. 3. The brief facts of the case are that GE were engaged in manufacture/selling/trading of multi media speakers. GE purchased parts of speakers and assembled them into multi media speakers. These speakers were sold with their brand name "EXCEL". They claimed that during the period 2007-2008 to 2010-2011, no duty was payable on these speakers as the value of clearance was within the SSI exemption limit. Multi media speakers with or without FM radio were also received by GE from M/s Krishna Technologies and M/s JMD Computers. GE printed brand names of various buyers on such speakers and packed them for sale. The disputes in the present appeal mainly revolves around two issues :- (a) classification of multi med....
X X X X Extracts X X X X
X X X X Extracts X X X X
....and one or more loudspeakers 85184000 Audio-frequency electric amplifiers 85185000 Electric sound amplifier sets 85189000 Parts" "8527 Reception apparatus for radio-broadcasting, whether or not combined, in the same housing with sound recording or reproducing apparatus or a clock - Radio-broadcast receivers capable of operating without an external source of power : 85271200 Pocket-size radio cassette-players 85271300 Other apparatus combined with sound recording or reproducing apparatus 85271900 Other - Radio-broadcast receivers not capable of operating without an external source of power, of a kind used in motor vehicles : 85272100 Combined with sound recording or reproducing appa....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ices like computers or audio players for sound output. A comparison of the above goods with multi media speakers + sub-woofer, without FM radio, indicates that both the products are almost identical except for the fact that in one, there is a an additional built in FM radio, in the sub-woofer. We are not in agreement with the lower authority in the conclusion that the speaker system combined with sub-woofer having built in FM radio, attains clearly defined function of an FM radio rather than a speaker system. In a plain trade parlance it is clear and apparent that a person intend to buy a multi media speaker system will consider the impugned product for his requirement. The FM radio is an added, in built feature. As clearly shown in the sal....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... such speakers manufactured by them are well within the exemption limit for small scale unit. The Original Authority held that even in the speakers sold with EXCEL brand, the brand "QHMPL" is mentioned. We note that the brochure shows EXCEL as a registered trade mark. It is indicated that the said speakers are marketed and supported by QHMPL group. We find, no brand name of other person can be said to have been used in such situation. 10. Regarding manufacture of speakers with other's brand name we note that GE is affixing brand name of buyers on the speakers purchased from M/s Krishna Technologies and M/s JMD Computers. We note that the show cause notice did not propose demand on combined turnover of GE, Krishna Technologies and JMD Com....