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2017 (9) TMI 449
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....05. Shri shyam Narayan, supervisor who was present in the factory at the time of visit stated that they are engaged in the trading of DVD/VCD players etc. They are receiving goods from their unit at Parwanoo(H.P.). After receiving the items in their factory premises at Noida. They were repacking the sets, and putting a sticker of running SI. No., sticker bearing imprint "Manufactured & Marketed by MIT Corporation, Parwanoo". It appeared to Revenue that the process of testing, labeling/relabeling and repacking etc. of the product amounts to deemed manufacture in terms of Section 2(f) (iii) of Central Excise Act, 1944. Accordingly, the respondent as required under Rule 9 read with Section 6 of the Act was required to obtain registration, which they have failed to do and have violated law by clearing the goods without payment of duty. Accordingly, the goods found in the factory at that time valued at Rs. 31,49,742/- were seized. Thereafter, show cause notice dated 23rd of January, 2006 was issued alleging that on close scrutiny of activities being undertaken in the factory. It was observed that DVD/VCD players were lying in different stages as follows : Stage-I: DVD player Model No. ....
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....ed for quality control. Each package of DVD/VCD is opened in the unit and testing of the product is carried out in separate room situated in rear part of the building. After, testing and quality check the stickers were pasted inside the product on major parts, body of the product, as well as its outer packing. Representative samples of DVD player Model DMS 7272A and DMS 4545M were drawn. It further appeared to Revenue that after importing the goods. The respondent is undertaking quality check of the goods so imported, by opening each set by removing the top cover of set and pasting the sticker on major parts which appear to denote, month and year of manufacture/Q.C. check. After Q.C. check and pasting sticker on major parts inside the set, top cover is refitted. Then the stickers of Q.C. Passed and Running SI. No. is pasted on the body of DVD/VCD players. After repacking of the set, sticker of running SI. No., sticker bearing imprint Manufactured and Marketed by MIT Corporation, Parwanoo , item, Model No. and MRP, Accessories Inside etc. have been pasted on the cartons of DVD/VCD players. Accordingly, it appeared to Revenue that the respondent was engaged in the detailed process of....
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....ued at Rs. 31,49,742/- (assessable value) with an option to redeem the same on payment of redemption fine of Rs. 8,00,000/- in lieu of confiscation along with penalties as aforesaid. Being aggrieved the appellant preferred appeal before Learned Commissioner (Appeals) who have been pleased to allow the appeals both of the respondent Company and its Vice-President Shri Subhash Lalwani. 10. The Learned Amicus curiae for the respondent urges that the respondent was having two units, one at Delhi and the other at Noida doing similar activity of receiving the goods from the Parwanoo unit and after checking the goods and refreshing of missing stickers were clearing the same. The Delhi Commissioner read after verification of facts at Parwanoo by the Central Excise Officers at Parwanoo, vacated the seizure against them and there cannot be a different ground or treatment at Noida. The inquiries carried out by the Central Excise Officers of Parwanoo, as well as the registration by Director of Industries of H.P., certifying that the goods were manufactured at Parwanoo, not at Noida. The Learned Counsel further states that even for argument sake, if it is taken that the activity undertaken by ....
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....carried out by them in the Noida unit, which includes affixing various kinds of stickers namely MRP sticker, Accessories inside sticker, Ok sticker. Further, Shri Vinay Kakkar, the inspection engineer in his statement dated 23/08/2005 have categorically stated that they pack the DVD/VCD players after testing. He also admitted that the putting sticker of SI. No. and sticker of month and year. He also agreed that sticker of month and year was pasted on lens, exterior backside, MPEG card and IC inside the set. 12. Having considered rival contentions I find that there is no evidence that the VCD/DVD players were imported by the respondent MIT Corporation, directly at Noida. There is no evidence that the goods transferred from Parwanoo, to Noida were not manufactured at Parwanoo. The allegation in the show cause notice that some goods were found in testing room where some stickers were not fixed is not sufficient evidence to establish that manufacturing was carried out on the goods seized at Noida, especially when there is contrary report of the investigation carried out at Parwanoo unit. The Department has failed to put forth even a single bill of entry to sustain its claim that there....