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TMI Blog1996 (2) TMI 247X X X X Extracts X X X X X X X X Extracts X X X X ..... ng that during the period prior to 1-3-1988 conversion of granules into powder, another primary form, would not amount to manufacture under Section 2(f) of Central Excises and Salt Act, 1944 in view of Chapter Note 3 of Chapter 39. He, therefore, erred in setting aside the order of the Assistant Collector who has held that in view of Chapter Note 6 of Chapter 39 the conversion would amount to manufacture. Ld. DR submits that Chapter Note 6 to Chapter Note 39 even prior to amendment categorically states that conversion of one primary form into another primary form amounts to manufacture . In this case granules are converted into powder. Conversion of granules, a primary form, into powder, another primary form in these circumstances, therefor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the amendment on March 1, 1988. 6. In Heading Nos. 39.01 to 39.14, the expression primary forms applies only to the following forms :- (a) Liquids and pastes, including dispersions (emulsions and suspensions) and solutions; (b) Blocks of irregular shape, lumps, powders (including moulding powders), granules, flakes and similar bulk forms, and the conversion of any one primary form into another shall amount to manufacture ." 3. Heading Nos. 39.01 to 39.11 apply only to goods of a kind produced by chemical synthesis, falling in the following categories :- (a) Liquid synthetic polyolefins of which less than 60 per cent by volume distils at 300oC, after conversion to 1,013 milibars when a reduced pressure distillation method is u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is not a product of chemical synthesis. It is true that from 1-3-1988 Chapter Note 6 was specifically amended through addition of a non substante clause to clarify that notwithstanding anything in Chapter Note 3, Headings 39.01 to 39.14 shall also include primary forms obtained from conversion of one primary form to other, and such conversion shall amount to manufacture. In our view this amendment was only of clarificatory nature which only made explicit what was already otherwise implicit in the statue. Moreover, we find that classification as such is not in dispute before us Primarily Chapter Note 3 relates to classification by indicating which are the kinds of goods under primary form which would be covered under Heading 39.01 to 39.1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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