1. Gramin Power Corporation Ltd. is engaged in the activity of generation and distribution of electricity in the rural area of the state of Maharashtra. The central excise officer demanded notice for generation and distribution of electricity. The assessee contended that before levy of excise duty, electricity must fall under the definition of goods i.e. movable (or tangible) and marketable. Advice whose contention is correct.
2. Appu Ltd. is a manufacturer of motor parts (two-wheeler) suffering loss due to low production since last five years. The management of the company appoint cost accountant to identify the bottleneck of the production process. The cost accountant submitted his report. The management on the basis of report initiates repairs & maintenance job to improve the production capacity of the company. After repair & maintenance, the production capacity is increase twice. The excise department alleged that the process amount to manufacture and raise demand for the same. Is the contention of the department is tenable?
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