2004 (7) TMI 487 - AT - Central Excise

Summary

Issues:
1. Whether the processes undertaken by M/s. Dabur India Ltd. in respect of 'Keora Water' purchased from the market amount to manufacture.
2. Whether the processes undertaken by the appellants bring into existence a new product having a different name, use, or character.

Issue 1:
In the case of M/s. Dabur India Ltd., the main issue revolves around determining whether the processes conducted by them concerning 'Keora Water' purchased from the market constitute manufacturing. The appellant argued that the processes of filtration and purification applied to the keora water do not alter its name, character, or use, thus not amounting to manufacture. The Revenue classified keora water under a specific heading in the Central Excise Tariff Act, emphasizing its suitability for human consumption and use in perfumery and food preparations. The appellant relied on various legal precedents to support their stance that their activities do not qualify as manufacturing, particularly highlighting the absence of distillation in their processes.

Issue 2:
The second issue in the appeals pertains to whether the processes undertaken by the appellants result in the creation of a new product with a distinct name, use, or character. The analysis of the processes revealed that the appellants primarily engaged in purifying the keora water by removing impurities through filtration. It was established that this purification process did not transform the keora water into a new product but merely rendered it free from impurities. The Tribunal referenced previous judgments to support the conclusion that the removal of impurities alone does not constitute manufacturing. Additionally, the classification of the product under a specific heading in the Central Excise Tariff Act was crucial in determining the applicability of manufacturing processes. The Tribunal ultimately ruled in favor of the appellants, setting aside the previous order and allowing the appeals based on the classification and nature of the processes involved.

This detailed analysis of the legal judgment from the Appellate Tribunal CESTAT, New Delhi, provides a comprehensive overview of the issues, arguments presented by both parties, relevant legal precedents, and the Tribunal's reasoning leading to the final decision in the appeals.