2015 (6) TMI 954 - AT - Central Excise

Duty demand - Manufacturing activity - Oxygen and Argon gases procured in bulk in tankers were loaded into small cylinders - Held that - Prima facie, perusal of the judgment of the Apex Court 2011 (8) TMI 93 - Supreme Court of India throws light that in the case relied by Revenue relates to processing carried out. But, in the present case that is absent. By this we do not express any opinion on the determination of liability on the basis of the tariff entry and chapter note at this stage. However, there shall be waiver of pre-deposit during the pendency of the appeal. - Stay granted.

Summary

The Appellate Tribunal CESTAT CHENNAI ruled that loading gases into small cylinders without processing does not amount to manufacture. The Tribunal referred to previous cases and a Board's Circular to support this decision. The Revenue argued that the activity was done to market the goods, citing a Supreme Court case. The Tribunal noted that the Supreme Court case involved processing, which was absent in this case. Pre-deposit was waived during the appeal process.