1 IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION CENTRAL EXCISE APPEAL NO.1 OF 2004 The Commissioner of Central Excise ..Appellant. V/s. M/s. Sony Music Entertainment (I) Pvt. Ltd. ..Respondent. Mr. R.V. Desai, senior counsel with R.B. Pardeshi for appellant. Mr. D.B. Shroff with Mehul Shah for respondent. CORAM : V.C.DAGA AND J.P.DEVADHAR, JJ. DATED : 3RD DECEMBER, 2009. P.C. :- 1. Heard learned senior counsel for the appellant and the counsel appearing for the respondent. The appeal was admitted on 1st September, 2005 the following substantial question of law:- " Whether the activity of packing imported Compact discs in a j ewel box along with inlay card would amount to manufacture under section 2(f) of the Central Excise Act, 1944 ? " 2. The factual matrix from the order of the Tribunal is as under:- Sony Entertainment (India) Pvt. Ltd. was inter alia engaged in the manufacture of pre-recorded audio cassettes. It commenced in April, 1997 the activity of marketing recording compact discs. The appellant imported recorded audio and video discs packed in boxes of 50. After receipt of the material in its factory, it packed each individual disc in transparent 2 plastic cases known as jewel boxes, an inlay card containing the details of the content of the compact disc was also placed in the jewel box. The whole was then shrink wrapped. The appellant thereupon sold such packed compact discs in wholesale. 3. A show cause notice dated 12/4/2002 was issued to the appellant alleging therein that the process undertaken by the appellant in regard to the compact discs amounted to manufacture. The said show cause notice was replied by the respondent. The adjudication authority by order in order was pleased to confirm the show cause notice. Not satisfied with the aforesaid order, the appeal was carried to the Customs, Excise and Service Tax Appellate Tribunal, West Regional Bench at Mumbai, who after hearing was pleased to record a finding of fact reading as under:- " Note 6 to Section XVI of the tariff provides that in respect of goods covered by that section, conversion of an article which is incomplete or unfinished but having the essential character of a finished article into a complete finished article shall amount to manufacture. It clearly does not apply to the facts before us. None of the activity that the appellant undertook involved any process on the compact discs that were imported. Those compact discs were complete and finished. They could be played by any person in order to listen to the sound and view the images that they contained. They were imported in finished and completed form. The mere packing of these discs has no bearing on the fact that they were imported complete and finished. " 4. We were taken through the order of the Tribunal as well as the order-in-original. Having seen the facts and circumstances together with the evidence available, no fault can be found with the impugned order. 5. The Tribunal has rightly concluded that the activities carried out by the respondent does not amount to manufacture since the compact disc 3 were complete and finished when imported by the assessee. They were imported in finished and and completed form. In the above view of the matter, the question framed is answered against the revenue and in favour of the assessee. 6. The appeal stands disposed of accordingly with no order as to costs. (J.P.DEVADHAR, J.) (V.C.DAGA, J.)