Zen Engineering Ltd. manufactures various types of flexible packaging machines known as form, fill and seal machines. Machines are made to order as all the dimensions of packaging/sealing of pouches are provided by the c
CS Professional · Advanced Tax Laws and Practice · PYQS · June 2014
Zen Engineering Ltd. manufactures various types of flexible packaging machines known as form, fill and seal machines. Machines are made to order as all the dimensions of packaging/sealing of pouches are provided by the customer. The machines are required to be tested by the engineers of the customers before dispatch of the machines. The company makes entry in daily stock account (RG-1) only after the completion of inspection and when the customer is satisfied. The contention of the Department is that the manufacture of machine is complete before testing of machine and its acceptance by the customer. Examine with the help of decided case law, whether the contention of the department is justified.
Topics: Central Excise / Indirect Tax
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