1994 (7) TMI 141

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..... under Rule 173-H and had cleared after procuring three bags weighing 150 kgs and 16 bags weighing 800 kgs of Dextrose Powder without duty. The party had received the product Anhydrous Dextrose Powder for re-conditioning under Rule 173-H of the Central Excise Rules and had cleared after processing Dextrose Powder. The demand was raised for the products cleared without payment of duty and the same was confirmed by the Assistant Collector. In appeal Collector (Appeals) has observed that Anhydrous Dextrose Powder which was brought in for re-processing/re-conditioning/re-packing and the Dextrose Powder which were cleared subsequently are the same in composition. Seiving does not amount to manufacture. Clearance of the Dextrose Powder without dut .....

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..... ount to manufacture and after re-processing no new product came into existence. All the three forms of dextrose are liable to duty under same tariff entry and accordingly on re-processing one item into another cannot be charged to duty and he relied upon the following decisions in support of his contention. (1) Government of India in Re: Union Corporation, Bharatpur 1982 (10) E.L.T. 491 (Govt. of India). (2) Collector of Central Excise v. Bakul Aromatics Chemicals Ltd. 1989 (43) E.L.T. 758 (T). (3) Collector of Central Excise v. Maize Products Ltd. 1990 (49) E.L.T. 544 (T). 6. We have considered the submissions made by both sides and perused the records including citations. We find that the Anhydrous Dextrose Powder was brou .....

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..... dard quality of the said goods, the goods in question were obtained by application of process without changing the characteristics and propriety of returned goods. This factual position was not rebutted by the Department with any evidence. Since the Supreme Court time and again has held in series of decisions that every change in the raw material is not manufacture; that for transformation of a product, a new and different article must emerge having a distinct name, character or use. Mere change in the physical form, shape or substance of a commodity would not by itself lead to the conclusion that a new article has been manufactured. Following the ratio of the Supreme Court decisions, the Department was not justified in levying the tax on c .....

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