The Gramophone Co. Of India Ltd vs The Collector Of Customs, Calcutta on 25 November, 1999
4. We find that the demand is for the period May 1997 to September 1997 and the Chapter Note 7 of Chapter 85 of the Central Excise Tariff was introduced vide final bill 1997, as per Chapter Note recording of sound will amount to manufacture. Further, we find that Honble Supreme Court in the case of Gramophone Co. of India Ltd. (supra) held that recording of audio cassettes on duplicating music system amounts to manufacture as blank audio cassette is distinct and different from pre-recorded audio cassette and two have different use and name. In these circumstances, the finding in the impugned order that recording of sound does not amount to manufacture is not sustainable. The impugned order is set aside and matter is remanded to the Commissioner (Appeals) to decide issue of valuation, after affording an opportunity of hearing to the respondents. The appeal is disposed of by way of remand.