ARTICLE
28 March 2024

Strapping Together Of Tyres, Tubes And Flaps For Replacement Market, Is Not 'Deemed Manufacture'

LS
Lakshmikumaran & Sridharan

Contributor

Lakshmikumaran & Sridharan
Lakshmikumaran & Sridharan (LKS) is a premier full-service Indian law firm specializing in areas such as corporate & M&A/PE, dispute resolution, taxation and intellectual property. The firm, through its 14 offices across India works closely on litigation and commercial law matters, advising and representing clients both in India and abroad.
The CESTAT Mumbai has held that strapping together of tyres, tubes and flaps, referred as ‘TTF', at the premises of logistics service provider, for dispatch to dealers...
India Consumer Protection
To print this article, all you need is to be registered or login on Mondaq.com.

The CESTAT Mumbai has held that strapping together of tyres, tubes and flaps, referred as 'TTF', at the premises of logistics service provider, for dispatch to dealers for catering to replacement market for bus/lorry operators, is not 'manufacture' under Section 2(f)(iii) of the Central Excise Act, 1944.

The adjudicating authority had in this case concluded that strapping at three places, affixing of hologram (after inspection and quality ascertainment) and offer of warranty, amounted to 'treatment' in the definition of 'manufacture' in Section 2(f).

Allowing the appeal, the Tribunal observed that price of aggregate was the sum of price of the three disaggregated products.

Submission that inspection done at logistics service provider's premises fell within Section 2(f)(iii), was also found not tenable, as it implied that the same was lacking at prior stage.

Further, observing that Section 2(f)(iii) used the expression 'marketable' and not 'more marketable', the Tribunal in Michelin India Pvt. Ltd. v. Additional Director General rejected the Department's plea of hologram affixing. According to the Tribunal, this proposition also presupposes lack of marketability in the absence of hologram.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

ARTICLE
28 March 2024

Strapping Together Of Tyres, Tubes And Flaps For Replacement Market, Is Not 'Deemed Manufacture'

India Consumer Protection

Contributor

Lakshmikumaran & Sridharan
Lakshmikumaran & Sridharan (LKS) is a premier full-service Indian law firm specializing in areas such as corporate & M&A/PE, dispute resolution, taxation and intellectual property. The firm, through its 14 offices across India works closely on litigation and commercial law matters, advising and representing clients both in India and abroad.
See More Popular Content From

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More