GLOBAL ENTERPRISES Vs. COMMISSIONER OF CENTRAL EXCISE

JUDGEMENT

(1.) THIS order is in respect of the stay petition No. E/S/57796/2013 filed along with appeal No. E/57207/2013 by M/s. Global Enterprises (hereinafter referred to as the Appellants) against the Order -in -Original No. 14/2012 -13, dated 31 -1 -2013 issued by Commissioner of Central Excise, Delhi -II. In terms of this order -in -original the Commissioner : - -

(2.) THE facts of the case, briefly stated, are that the appellants are manufacturing various types of amplifier speakers with and without FM radio. They were manufacturing these items with their own brand name as well as claimed to be receiving them in fully assembled form from other manufacturers and clearing them after putting the brand names belonging to others. The appellants claimed that their amplifier speakers with or without FM radio would merit classification under Central Excise Tariff Heading 85.18 because FM radio was incidental to the speakers while department has contended that speakers with FM radio would fall under Heading 85.27. It is seen that amplifier speakers with FM radio under Heading 85.27 would be covered under the "Third Schedule" referred to in Section 2(f)(iii) of the Central Excise Act, 1944 for which there is a deeming provision whereby, inter alia, putting a brand name and/or re -packing would amount to manufacture. Such goods cleared after putting the brand names belonging to others will not be eligible for SSI exemption under Notification No. 8/2003 which the appellants wrongly claimed for not paying duty. On the other hand, amplifier speakers covered under Heading 85.18 do not suffer from any such deeming provision and thereby putting others' brand names thereon would not amount to manufacture.

(3.) THE descriptions of Headings 85.18 and 85.27 are reproduced below : - -