9911796707
TMI Blog1994 (4) TMI 179X X X X Extracts X X X X X X X X Extracts X X X X ..... Excise Tariff Act, 1985. `Aluminium Paint manufactured by the appellants has two constituents viz. aluminium paste and medium. Since Aluminium Paste and Medium are required to be mixed only at the time of use, there has been a long standing trade practice to pack aluminium paste and liquid medium in separate containers and to market the product in a single composite container. This practice is followed only in the case of containers upto the capacity of 4 litres each. However, larger quantities are packed and marketed separately as aluminium Paste and medium. The appellants do not manufacture aluminium paste which is acquired by them from other manufacturers in bulk containers of 25 kgs each against gate passes for being repacked in unit c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Central Excise Tariff can constitute manufacture, whereas Note 2 to Section VI invoked by the Additional Collector relates only to classification of goods put up in sets consisting of two or more separate constituents. He submitted that the Board s Tariff Advice F. No. 95/13/78-CX. 3, dated 23-2-1981 which required the assessment of `aluminium paste and `liquid medium packed in separate containers and placed together in a single carton to be treated as a composite product for being assessed as `aluminium paint is also not relevant to the present case since duty paid aluminium paste is only repacked by the appellants and it is not supplied in a common carton along with the medium. He reiterated his stand that `aluminium paste in quantiti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... minium paste purchased from outside into smaller containers has to be deemed as `manufacture since repacking of aluminium paste was being done not for supplying it as `aluminium paste but along with the medium as `aluminium paint . He stated that Note 2 to Section VI of the Central Excise Tariff provides that goods when put up in sets consisting of two or more separate constituents intended to be mixed together for obtaining any product of Section VI or VII are to be classified under the appropriate heading provided the constituents are identifiable as being meant for mixing together. He contended that this provision has to be deemed as constituting a legal fiction, in terms of which the appellants activities would constitute manufactur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ments of the customers who use such repacked aluminium paste along with medium manufactured in the appellants factory for the preparation of aluminium paint since aluminium paste if kept in mixed condition becomes hard and is not marketed as ready-mixed paint. For this reason it has been the long standing trade practice to put aluminium paste and liquid in separate containers. In fact aluminium paste and medium packed in separate containers of capacity upto 4 litres are marketed by manufacturers in a single carton to facilitate their use as paint by the consumers. We are inclined to agree with the Learned Counsel for the appellants that re-packing of duty paid `aluminium paste into smaller containers would not constitute `manufacture in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inium paste into smaller packing of 4 litres and above would constitute manufacture and whether such repacked aluminium paste would be assessable as `aluminium paint along with the medium manufactured by the appellants would depend on whether the orders received by them are actually in respect of aluminium paint and whether the two items are invariably cleared and marketed together in sets by the appellants as aluminium paint. From the case records we find that documents such as relevant orders received by the appellants, the invoices prepared by them, the relevant A.R. 1 and R.T. 12 etc. which would be material for determining whether the process of repacking by the appellants of bulk aluminium paint into smaller packing of 4 litres and a ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
