TaxTMI 
TaxTMI 
2024 (9) TMI 1779
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....ms Act, 1962 on the appellant. The Appeal no. 22019/2014 filed by the Managing Director of the appellant challenging the penalty imposed on him under section 114A of the Customs Act, 1962. Similarly, Appeal No. 22021/2014 is filed by the M/s. Web Peripherals Ltd, Mysore pertains to period July 2008 to September 2012, challenging the order for reversal of the Cenvat Credit, demand of interest under Rule 14 of Cenvat Credit Rules, 2004 and penalty under Rule 15(2) of Cenvat Credit Rules, 2004 read with Section 11AC of Central Excise Act, 1944. The Appeal no. 22020/2014 is filed by the Managing Director of the appellant challenging the penalty imposed on him under Rule 26(2)(ii) of the Central Excise Rules, 2002. 3. The brief facts are the Appellant had imported 'Toner Powder' under Customs (Import of Goods at Concessional Rate of duty for Manufacturing of Excisable Goods Rules, 1996 (IGCRDMEG, Rules, 1996) by executing bond and by using the said imported item, 'used waste empty cartridges' were transformed to 'Compatible Cartridges' and claiming that the above activities amounts to manufacture, the Appellant had availed CENVAT credit and also paid excise duty on clearance of the '....
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....IV/16/14/401/2012-Tech dated 18.02.2013, it is informed that at present the issue is under examination by Head Quarters and decision on the subject matter will be communicated on receipt of information from the Head office. Learned Counsel for the Appellant also drew our attention to the communication addressed to Respondent dated 21.03.2012, reply received from the Respondent dated 13.09.2011 and the objection raised during Audit. From the above, it is evident that only objection raised during relevant period is regarding the value of goods and no objection was raised as to whether the activities carried by the Appellant amounts to manufacture or not. The Learned Counsel also drew our attention to the submission of monthly returns for the relevant period and submitted that the Appellant had brought the activities to the notice of the concerned authority from time to time and in the absence of any objection, the proceedings against the Appellant are unsustainable. 6. Further Learned Counsel drew our attention to the activity chart as detailed in Paragraph 7.11 of the impugned order and submitted that the goods after procurement are subject to large number of processes and only t....
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....nce it is an admitted fact that the imported 'Toner' is exclusively used for the manufacturing of 'Compatible Cartridge' and once it is found that the activities amount to manufacture, the allegation regarding contravention of the provisions of said Rules is unsustainable. In the present case, there is no dispute that the imported goods are not used for the purpose for which the goods were imported and demand merely based on the technical interpretation of law would hit the objective of the Section 25(1) of the Customs Act, 1962. Learned Counsel further submits that even, if it is assumed that the activities carried out by the Appellant does not amount to manufacture, over a period of time, Appellant had paid Central Excise duty, which is more than the duty forgone at the time of import. Considering the above, the proposal for cancellation of registration issued under IGCRDMEG Rules, 1996 is also unsustainable. 9. Regarding the finding in the impugned order to deny the input credit, Learned Counsel also submitted that since the import was made in Chennai and demand is made by Respondent under Central Excise Commissionerate in Mysore, hence they have no jurisdiction, and it is no....
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...., the product is affixed with label and a serial number. On completion of the above process, testing is done to check the quality of the product, and it is cleaned with IPS Solvent and sticker will be affixed on the Toner and sealed with antistatic cover. Thereafter it is packed in carton box. 13. Thus, we find that the process of conversion of used 'Waste Empty Toner Cartridge' into 'Compatible Cartridge' brings in a new product and the process undertaken by the appellant changes the basic character of used 'Waste Empty Toner Cartridge' and a marketable 'Compatible Cartridge' emerges. The appellant is also providing warranty and affixing labels with an assured shelf life. However as per the decision relied by the Learned AR in the matter of Domino Printech India Pvt. Ltd. (supra), the activity carried out by them is only relabeling of imported printing ink reservoir before sale without any process and considering such activity, Tribunal held that it does amount to manufacture. However, considering the above, we find that the activity carried out by the appellant amounts to manufacture. 14. Further as evident from the record, the Appellant had informed the concerned a....