TaxTMI 
TaxTMI 
1999 (11) TMI 62
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.... Act, 1985 which reads as 'audio cassettes'. Though the appellant is not required to pay Central Excise duty on pre-recorded cassettes by virtue of exemption provided by Notification No. 117/90, dated 16-5-1990 nonetheless it files classification lists in respect of such pre-recorded audio cassettes consistently with the statutory obligation cast on the appellant. Under the industrial licence granted to the appellant by the Government of India in the year 1977 for manufacture of pre-recorded audio cassettes the licensed capacity as endorsed was 1.2 million pre-recorded cassettes per annum. The capacity was increased from time to time by expanding the same under the licences issued by the Government of India. In April 1987 the existing capac....
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...., of a specified; (1) industrial plant, xxx xxx xxx and spare parts, other raw materials (including semi-finish material) or consumable stores not exceeding 10% of the value of the goods specified above provided that such spare parts; raw material or consumable stores are essential for the maintenance of the plant or project mentioned in 1 to 6 above." 5. In view of Chapter 98 Heading No. 98.01 of the First Schedule to the Customs Tariff Act, 1975 and the Exemption Notification No. 315/83, the import contract has to be registered under clause 5 of the Projects Import Regulations, 1986 (hereinafter 'Regulations', for short). The appellant moved two applications before the Assistant Collector of Customs, C....
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....reproduced hereunder : "3. Definitions - For the purposes of these regulations : (1) "industrial plants" means an industrial system designed to be employed directly in the performance of any process or series of processes necessary for manufacture, production or extraction of a commodity; but does not include - (i) establishment designed to offer services of any description such as hotels, hospitals, photographic studios, photographic film processing laboratories, photocopying studios, laundries, garages and workshops; or (ii) a single machine or a composite machine, within the machine assigned to it, in Notes 3 and 4 to Section XVI of the said First Schedule. 4. Eligibility - The assessment under the said Heading No. 98.01 s....
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...., leather case, etc. from plastic raw material with the help of injection moulding facility; (iii) Assemb1y of cassette parts to make a C-O tape; (iv) High Speed transfer of music signals from 1/2" master tape to 1/8" pancakes; (v) Assembly of recorded pancakes into cassettes; (vi) Polymeric plate making for printing machines; (vii) Printing of Information on cassette body; (viii) Printing of inlay cards; (ix) testing and cellowrapping of the finished cassettes. The machines which were the subject of the Contract dated 6-11-1989 were required for the 4th mentioned item, namely, high speed transfer of music signals from 1/2" Master Tape to 1/8" pancakes. 11. The term 'manufacture' is not defined in the Customs Act.....
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....ly known as a distinct and separate commodity having its own character, use and name whether it be the result of one process or several processes, manufacture takes place; the transformation of the goods into a new and different article should be such that in the commercial world it is known as another and different article. Pre-recorded audio cassettes are certainly goods known in the market as distinct and different from blank audio cassettes. The two have different uses. A pre-recorded audio cassette is generally sold by reference to its name or title which is suggestive of the contents of the audio recording on the cassette. The appellant is indulging in a mass production of such pre-recorded audio cassettes. It is a manufacturing activ....