COMMISSIONER OF CENTRAL EXCISE Vs. AKRUTI VIDEO CLUB

JUDGEMENT

(1.) THIS is an appeal at the instance of the Revenue. They challenge the correctness of the Order -in -Original No. 34/MP/90/Addl. Collr./SRT, dated 18 -12 -1990. The short facts necessary for the disposal of the appeal are as follows.

(2.) ON the allegation that the respondents herein were engaged in getting the blank video cassettes recorded from various dealers and agents and used to supply recorded video cassettes on monetary consideration, proceedings were initiated against the respondents for realising a sum of Rs. 1,88,130.00 by way of duty. In the proceedings, the claim put forth by the department was disputed. Addl. Collector dropped the proceedings relying on the decision of the Tribunal in the case of Prabhat Associates and Ors. v. Collector of Central Excise, Bangalore, 1985 (22) E.L.T. 465.

(3.) ADDITIONAL Collector dropped the adjudication proceedings by his order dated 18 -12 -1990. An order No. 143 -R/91, dated 12 -12 -1991, was passed by Member, Central Board of Excise and Customs in exercise of the powers conferred under Section 35E(1) of the Central Excise Act, 1944 and directed the department to prefer an appeal before this Tribunal. Pursuant to that order of review, this appeal was filed on 31st August, 1999. 3. Learned counsel representing the department relied on the decision of the Supreme Court in Gramophone Co. of India Ltd. v. Collector of Customs, Calcutta reported in 1999 (114) E.L.T 770 (S.C.) to contend that preparation and sale of pre -recorded audio cassettes is sale after manufacturing activity and so the activity undertaken by the respondent herein is a manufacturing process coming within the purview of Central Excise Act, 1944. Consequently, it was submitted that the learned Additional Collector was not justified in dropping the adjudication proceedings initiated against the respondent.