TaxTMI 
TaxTMI 
2017 (12) TMI 952
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....tickers were affixed. They were further affixing fresh MRP stickers of higher value applicable in the area, which were different from the area for which said fans were dispatched by the manufacturer. The value of such goods, on which MRP was altered in the godown, was Rs. 9,97,824/-. Dy. General Manager of the appellant no.1 could not give lawful explanation for changing the original MRP and affixing higher value MRP stickers on the fans. The Revenue seized the goods as it felt that these were manufactured goods in view of the Section 2(f) of Central Excise Act, 1944. Records were also resumed and on the basis of records it appeared that M/s Khaitan Electricals Ltd., Sector 6, Faridabad, conducted re-packing of goods and affixed higher value MRP stickers on Ceilling Fans of EPRO Ranges, Exhaust Fans, Table Fans, Fresh Air Fans, Wall Fans and Pedestal Fans etc on total 1,89,807 pieces of fans collectively valued to Rs. 13,84,15,914/- and removed/ dispatched to Andaman & Nicobar Island, Daman Diu, Dadra & Nagar Haveli, Goa, Gujarat, Himachal Pradesh, Jammu-Kashmir, Jharkhand, Karnatka, Maharashtra, Orissa, Punjab, Tamilnadu, Kerala and North-Eastern States from their godown without p....
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....ny process- i) Incidental or ancillary to the completion of a manufactured products; ii) Which is specified in relation to any goods in the section or chapter notes of [the First Schedule] to the Central Excise Tariff Act, 1985 (5 of 1986) as amounting to [manufacture; or] iii) Which, in relation to the goods specified in the Third Schedule, involves packing or repacking of such goods in a unit container or labelling or re-labeling of containers including the declaration or alteration of retail sale price on it or adoption of any other treatment on the goods to render the product marketable to the consumer." 8.1 The activity which is carried out by the appellant is described in the statements of Sh. J.P. Gupta, Deputy General Manager (DGM) and authorized signatory of M/s Khaitan Electricals Ltd. which are extracted below:- "In their warehouse they received goods from their Paonta sahib unit, the goods include Electric motors, fan blades, exhaust fan, pedestal fan, wall fan and other. The goods received from Paonta Sahib were used to dispatch to their own branches. He further stated that at the time of receipt of goods from Paonta Sahib factory....
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....milnadu, Kerla, and North Eastern States from their godown as per instructions & supervision of Sh. J.P. Gupta being incharge of the godown. 8.3 He further elaborated the procedure of marking & affixing the enhanced MRP stickers on the ceiling fan, table fan, exhaust fan, Padestal fan received from M/s. Paonta Sahib factory against some of the invoices in the following manner:- Sr. No. Fan Model MRP as per Poanta Sahib Inv. In Rs. Altered MRP MRP in above state 1. C/F 1400mm mag. Epro 1310 (inv. No. 287 dt. 09.08.05) 1365 1365 2. C/F 1400 mm obelo Epro 1490 (inv No. 291 dt. 11.08.05) 1560 1560 3. C/F 1200 mm m/crown Epro 1485 (inv No. 284 dt. 08.08.05) 1545 1545 4. C/F 1200 mm mag. Epro 1205 (inv No. 287 dt. 09.08.05) 1250 1250 5. C/F 1200 mm flair Epro 1465 (inv No. 284 dt. 08.08.05) 1520 1520 6. C/F 1200 mm sheriff Epro 1230 (inv No. 284 dt. 08.08.05) 1280 1280 7. C/F 1200 mm obelo Epro 1390 (inv No. 284 dt. 08.08.05) 1445 1445 8. C/F 1200 mm Sheriff crown 1375 (inv No. 291 dt. 11.08.05) 1430 1430 9. T/fan merlin maestro 1740 (in....
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....n this regard, we find that the activity carried out by the appellants in their Faridabad godown cannot be called as packing or re-packing in unit container because as per the statement of Sh. J.P. Gupta, Dy. General Manager, four motors and four sets of blades received from their factory at Paonta Sahib were packed together in master cartons. Further, as per the statement given by Sh. Ram Verma, the store in-charge, four motors with one set of blades for each were packed in one carton and then re-packed in one outer master carton. The master carton was fastened with a packing strip and MRP sticker was affixed on the said master carton. The above activity cannot be called packing or re-packing of goods in unit containers because the master carton in which four blades sets and four motors sets were packed and MRP sticker applied is not a unit container. 10.2 Coming to the labelling part, which was carried out in the appellants godown, we find that at the time of receipt of goods, the said goods bore the MRP stickers valid for 10 or 11 states. However, if the said goods were to be dispatched to states other than those 10 or 11 states, the old MRP sticker was changed and a new high....