2003 (6) TMI 86

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.... used cartridge are completely disassembled and critical worn out parts are replaced by new material/components; that thus the old and used cartridges lose their identity and what remains are the components obtained for manufacture of Laser Printer Cartridge; that major parts like Toner seal, seal full Tab, doctor blade, OPC drum, wiper blades are replaced with new components; that using these components, two sub-assemblies i.e. developer unit and waste unit are assembled and joined to make a complete Laser Printer Cartridge; that the cartridges are then repainted to give them a new look and the Respondent's brand name "LIPI" is affixed thereon; that these cartridges are tested for print quality, packed and sold in the market along with war....

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....r they have undergone a complete process of manufacture. 4. Opposing the appeal, Shri B.L. Narasimhan, the learned Advocate, submitted that the process of repairing old and used laser printer cartridges would not amount to manufacture as nothing is manufactured as a result of the process; that laser printer cartridge remains a laser printer cartridge even after processing/repairing with the only difference that on replacement of damaged or worn out parts it becomes fit for reuse and resale as laser printer cartridge; that there are 74 components out of which only 7 components are changed by them; that it has been held by the Tribunal in Modi Zerox Limited v. CCE, Meerut - 1997 (91) E.L.T. 116 (T) that "where certain parts are changed or w....

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....s dismantled..... The important point is that after rectification/replacement of the defective parts, the parts are reassembled in the form of parent equipment. The equipment is once again identifiable with the form in which it had been received for repairs, with the difference that after removal of the defects, it has been made serviceable and thus gives a new lease of life." Reliance has been placed on the following decisions also. 1. CCE, Meerut v. Samtel Color Ltd. - 2001 (135) E.L.T. 288 (T) = 2000 (41) RLT 333 (CEGAT). 2. CCE, New Delhi v. Usha India Ltd. - 2000 (122) E.L.T. 870 (T) 3. J.S.S. Printing Industries Pvt. Ltd. v. CCE, Calcutta - 2000 (122) E.L.T. 309 (T-LB). 6. We have considered the submissions of both sides. The admi....

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....by the Respondents. As no new commercial commodity comes into existence as a result of process employed by the Respondents, it cannot be said that the processes undertaken by them amount to manufacture and consequently no duty of excise will be leviable. The mere fact, that the old and used laser printer cartridge is dismantled by the Respondents for the purpose of repair, would not convert the process into manufacture. This was the view expressed by the Tribunal in the case of Shriram Refrigeration Industries Ltd. - 1986 (26) E.L.T. 353 (T) wherein the Tribunal observed that the compressors can be repaired only after cutting open the outer shell and "This situation is not peculiar to compressors but occurs in the matter of repairs of pract....