Manufacture - Dissolving duty paid magnesium chloride in powder form in water to obtain a solution of Magnesium chloride - Central Excise - 120/2/88-CX.3

Manufacture - Dissolving duty paid magnesium chloride in powder form in water to obtain a solution of Magnesium chloride F. No. 120/2/88-CX.3 Dated 30-1-1988 Government of India Ministry of Finance (Department of Revenue) New Delhi The matter was under consideration as to whether the process of dissolving duty paid Magnesium Chloride in powder form in water to obtain a solution of Magnesium Chloride could be treated as a manufacturing activity and whether duty should be charged on the solution so obtained. Magnesium Chloride is classifiable under Heading No. 28.27 of New C.E.T. The said Heading does not make any distinction between Magnesium Chloride in powder form and Magnesium Chloride in the form of Solution. Magnesium Chloride is soluble in water. In short, even when Magnesium Chloride powder is dissolved in water, the resultant solution remains covered within the expression "Magnesium Chloride" and, therefore, no new commodity comes in existence. The said action, therefore, cannot be considered as manufacturing activity, since no new commodity comes in existence. Under these circumstances, duty would not be leviable on such solution of Magnesium Chloride if it is derived from duty paid Magnesium Chloride.