2023 (9) TMI 1279 - SCH - Central Excise

Levy of Excise Duty - Process amounting to manufacture or not - addition or blending of Multi-Functional Additives with Motor Spirit (MS) and duty paid High Speed Diesel (HSD) - HELD THAT - The Tribunal had followed its previous rulings as well as this Court s judgments on such issue, which had broadly held that unless the essential characteristic of the article of emerging product changed, the mere blending or addition of something in such articles leading to negligible or inconsequential changes, would not result in manufacture of or the emergence of a new product, as long as its usage remains the same. It is also a matter of record that the product emerging after blending confirms to the same specifications as in the case of old one. It is also pointed out that this issue has been decided against the revenue recently in Commissioner of Trade Tax v. M/s. Kumar Paints and Mill Stores Through its Proprietor 2023 (3) TMI 943 - SUPREME COURT . This Court is of the opinion that the appeals have to fail - Appeal dismissed.

Summary

Issues involved:
The issue involved in this case is whether the addition or blending of Multi-Functional Additives with Motor Spirit (MS) and duty paid High Speed Diesel (HSD) results in the transformation of those products into new products attracting fresh excise levy.

Summary:

Issue 1: Transformation of products for fresh excise levy
The Tribunal and the Court considered whether the addition or blending of Multi-Functional Additives with Motor Spirit (MS) and duty paid High Speed Diesel (HSD) results in the emergence of new products attracting fresh excise levy. Previous rulings and judgments were cited, emphasizing that unless the essential characteristic of the article of the emerging product changed significantly, mere blending or addition leading to negligible changes would not constitute the manufacture of a new product. The product emerging after blending was found to conform to the same specifications as the original product. The Court noted that this issue had been recently decided against the revenue in a previous case.

Decision:
Based on the above position, the Court concluded that the appeals must fail, and accordingly, they were dismissed.