Putting electrolytes and charging batteries of two-wheelers before delivery to customers prima facie does not amount to manufacture of TWO-WHEELERS
FOR a moment, we were STUNNED & shocked when we read the case.
But then, this is not SURREAL but reality for three "dealers" of two-wheelers in Nagpur who have demands confirmed them against them by the Commissioner of Central Excise, Nagpur on the ground that what the dealers were doing surreptitiously was MANUFACTURE of a two-wheeler.
The facts - The applicants are dealers of two-wheelers. The applicants are purchasing duty paid two-wheelers from the manufacturer and before supplying to their customers the appellants are putting electrolytes in the batteries and charging the same. The case of the Revenue is that this activity amounts to manufacture of two-wheelers.
The Bench took up the stay applications filed by all the three ‘dealers' against whom demand of Central Excise duty was confirmed one after the other last December.
The Bench observed -
"3. We find that the applicants are only dealers of the two-wheelers and only putting electrolytes and charging the batteries. Prima facie this activity cannot be considered as manufacture of the two-wheelers. In view of this, the pre-deposit of the dues is waived and recovery of the same is stayed during the pendency of the appeals. Keeping in view the nature of the issue, the Registry is directed to list these appeals for regular hearing…"
DDT is curious to know (like everyone who will read this) as to whether the two-wheelers of the customers have been impounded by the Nagpur Commissionerate for being clandestinely removed without payment of duty and whether the customers themselves have been made co-noticees in these proceedings for imposition of penalty!
Is the Board aware of this ELECTRIFYING case?