TaxTMI 
TaxTMI 
2025 (8) TMI 1652
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....blister packs or blister pack of 2 or 4 AA/AAA rechargeable batteries and branding them as "Eveready Ultima" or "Uniross/Power Bank" respectively. iii. In terms of the agreement, M/s Eveready Industries India Ltd. used to procure the following items: • unbranded battery chargers falling under tariff item 8504 4030 of the CETA, 1985 from small scale manufacturers, • imports branded rechargeable batteries falling under tariff item 8507 3000 of the Customs Tariff Act, 1975 from China. • various packing material such as blisters, blisters cards, 3-D holograms etc. iv Thereafter, the aforesaid items were supplied to the Appellant. The Appellant in its own premises and using its own labours undertook the activity of packing and branding and supplied the same to the Appellant. An employee of the M/s Eveready Industries India Ltd. was posted on the premises of the Appellant to ensure proper checks and to coordinate dispatches. v. Proceedings Against Eveready The department issued a SCN dated 29.05.2009 to M/s Eveready Industries Limited proposing to demand duty on that ground that the activity of activity of packing of recha....
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.... on Note 6 of the Section 16 of the 1st Schedule to the Central Excise Tarriff Act, 1985 read with Section 2(f) (ii) of allege that packing amounted to manufacture. xiii. Demand proposed in the SCN dated 27-12- 2013 and notice dated 01-08-2014 was confirmed by the vide OIO dated 08-01- 2015. xiv. Apart from the instant SCN, the following SCNs for subsequent and previous periods were issued to the Appellant. The demand proposed were confirmed by individual orders. The said orders have been set aside by this Hon'ble Tribunal vide FINAL ORDER No. 77474-77477/2023 dated 08-11-2023 by holding that the activity of packing rechargeable batteries along with charger does not amount to manufacture: SCN Date Period Appeal No. 14.07.2011 July 2006 to June 2011 Excise Appeal No. E/396/2012 28.02.2013 July 2011 to December 2012 Excise Appeal No. E/75002/2014 January 2013 to February 2014 Instant Appeal 05.02.2015 March 2014 to August 2014 Excise Appeal No. E/75049/2017 21.07.2015 September 2014 to February 2015 11.01.2016 March 2015 to July 2015 15.06.2016 August 2015 to December 2015 xv. WRIT PE....
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....eals is whether the activity undertaken by the Appellants would amount to 'manufacture' or not as defined under Section 2(f) of the CEA, 1944. The word 'manufacture' is defined in Section 2(f) of the CEA, 1944, the relevant portion of the definition is extracted hereunder for the purpose of reference: "manufacture" includes any process, - (i) incidental or ancillary to the completion of a manufactured product; and (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) amounting to manufacture; or as (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 relabelling 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, and the word "manufacturer shall be construed accordingly and shall include not only a person who employs hired labour in the production or manufacture of excisable goods, but also any person who engages in their production or manufacture....
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....mmissioner of Central Excise vs. M/s Sony Music Entertainment India Pvt Ltd, 2010- TIOL-46-HC-MUMCX, the Hon'ble Bombay High Court was considering a situation where the Appellant imported recorded audio and video discs packed in boxes of 50 and after receipt of the said material in its factory, it packed each individual disc in transparent plastic cases known as jewel boxes, an inlay card containing the details of the content of the compact disc was also placed in the jewel box. The whole was then shrink wrapped and sold. In such circumstances the question arose whether the activity of packing imported compact discs in a jewel box along with inlay card would amount to manufacture under section 2(f) of the CEA, 1944. The Hon'ble High Court by upholding the ruling of the Hon'ble CESTAT held that the activity of packing does not amount to manufacture. [Ref to pg. no. 25 of the Compilation of Cases] * Again, in Commissioner of Central Excise, Faridabad - II vs. Kapoor Lamp Shade Company (Factory Shop), 2016-TIOL-962-HC-P&HCX, the Hon'ble Punjab and Haryana High Court was dealing with a situation where the respondent used to procure various components of lamp shades and chandeliers from....
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....plete and finished article for the reason that neither any further assembly is carried out norany mechanical process which make a unfinished goods or incomplete product into complete and finished product. Theproduct purchased by the appellant is already complete and finished. Merely a quality test, which is nothing but by connecting with the power plug for checking whether it is working or not but by this quality test there is no transformation of the product, which is already in the fully manufactured form, therefore all the electrical goods purchased by the appellant are completely in manufactured form, therefore in our considered view this so called activity of quality testing, branding and packing of the already manufactured goods will not be covered by Note 6 of Section XVI of the Central Excise Tariff, therefore we hold that the appellant is not engaged in the manufacturing of the goods, they are only doing trading activity of bought out goods". * TI Diamond Chain Limited vs. Commissioner of C. Ex., Chennai - II, 2000 (126) ELT 790 (Tribunal) maintained by the Hon'ble Supreme Court in 2001 (130) ELT A259 (Supreme Court). * Dalmia Industries Ltd vs. Commissioner of C. Ex., Jai....
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....d "Uniross/Power Bank". In terms of the agreement, M/s. Eveready Industries India Ltd. procure the following items: * unbranded battery chargers falling under tariff item 8504 4030 of the CETA, 1985 from small scale manufacturers, * branded rechargeable batteries falling under tariff item 8507 3000 of the Customs Tariff Act, 1975 imported from China. * various packing material such as blisters, blisters cards, 3-D holograms etc. Thereafter, the aforesaid items were supplied to the Appellant. The Appellant in its own premises, using its own labourers undertook the activity of packing and labelling and supplied the same to the Appellant. An employee of M/s. Eveready Industries India Ltd. was posted on the premises of the Appellant to ensure proper checks and to coordinate dispatches. The department issued a SCN dated 29.05.2009 to M/s Eveready Industries Limited proposing to demand excise duty on that ground that the activity of packing of rechargeable battery along with charger and labelling the same amounts to "manufacture" under Section 2(f)of the Central Excise Act, 1944 and M/s Eveready Industries Limited being the real manufacturer is liable to pay the excise duty. The said SCN....