Bombay Cycle and Motor Agency Ltd. Vs. Commissioner of C. Ex. - Court Judgment

Excerpt:
1. the appellants had a contract with m/s. kirloskar brothers limited, whereby defective compressors earlier manufactured by m/s. kirloskar brothers ltd. were repaired by the present appellants. the revenue alleged that the process undertaken by the respondents amounted to manufacture of compressors on which duty was leviable. in this belief the adjudicating collector after hearing the appellants confirmed duty of rs. 2,51,07,053.73 of the appellants and also imposed a penalty of rs. 25 lakhs. the appeal is against this order.2. it is claimed that the facts in the present case were fully covered by tribunal's order no. c-ii/3572-77/ wzb/2000, dt. 20-11-2000 (certified on 4-12-2000) [2001 (132) e.l.t. 748 (t)] (appeal nos.e/2898, 2866-r/99-mum.)] (m/s. dattanand refrigeration services pvt ltd. and m/s. s.c. industries). the tribunal in that order had listed the process undertaken by the appellants in that case in paragraph 5 of the cited order. we find that the process undertaken by the present appellant was identical as seen by paragraph 6 of the impugned order.in the cited order the tribunal had held that the work of repair undertaken by the appellants did not amount to manufacture. in holding this the tribunal had relied upon two earlier judgments of the tribunal namely shriram industries [1986 (26) e.l.t. 353] and karon industries [1992 (42) ecr 522].3. we have satisfied that the process undertaken by the present appellant was the same as was undertaken by the appellants in the cited appeal of the tribunal. the cited order therefore covers the case completely. we hold that the process undertaken by the appellants did not amount to manufacture and therefore they were not liable to pay duty. the appeal is allowed with consequential relief if any.

Judgment:
1. The appellants had a contract with M/s. Kirloskar Brothers Limited, whereby defective compressors earlier manufactured by M/s. Kirloskar Brothers Ltd. were repaired by the present appellants. The revenue alleged that the process undertaken by the respondents amounted to manufacture of compressors on which duty was leviable. In this belief the adjudicating Collector after hearing the appellants confirmed duty of Rs. 2,51,07,053.73 of the appellants and also imposed a penalty of Rs. 25 lakhs. The appeal is against this order.

2. It is claimed that the facts in the present case were fully covered by Tribunal's Order No. C-II/3572-77/ WZB/2000, dt. 20-11-2000 (Certified on 4-12-2000) [2001 (132) E.L.T. 748 (T)] (Appeal Nos.

E/2898, 2866-R/99-Mum.)] (M/s. Dattanand Refrigeration Services Pvt Ltd. and M/s. S.C. Industries). The Tribunal in that order had listed the process undertaken by the appellants in that case in Paragraph 5 of the cited order. We find that the process undertaken by the present appellant was identical as seen by Paragraph 6 of the impugned order.

In the cited order the Tribunal had held that the work of repair undertaken by the appellants did not amount to manufacture. In holding this the Tribunal had relied upon two earlier judgments of the Tribunal namely Shriram Industries [1986 (26) E.L.T. 353] and Karon Industries [1992 (42) ECR 522].

3. We have satisfied that the process undertaken by the present appellant was the same as was undertaken by the appellants in the cited appeal of the Tribunal. The cited order therefore covers the case completely. We hold that the process undertaken by the appellants did not amount to manufacture and therefore they were not liable to pay duty. The appeal is allowed with consequential relief if any.