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TMI Blog1998 (4) TMI 193X X X X Extracts X X X X X X X X Extracts X X X X ..... damaged condition for re-processing and is not dutiable. He has noted the appellants submissions that the instant coffee is manufactured from duty paid coffee beans which are roasted and granulated and mixed with chicory roasts and then extracted and spray dried to form instant coffee. In the present case, in the damaged clotted instant coffee, the appellants carried out re-processing by emptying the damaged packets and dissolving them in hot water and then spray drying the same and once again pack them in new packets. The Commissioner also held that the A.C. mis-directed himself with regard to the re-processing of clotted coffee as given by the assessee and that re-processing does not involve grinding of coffee seeds, roasting and granulat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of the issue and issued order based on the party's after-thought statement placed before him." 3. Arguing for the appellants, the learned DR submits that it is a fresh process carried out by them and such fresh process results in marketable commodity and therefore, it has to be held as a process of manufacture calling for imposition of duty. 4. The learned Advocate submits that the duty had already been paid on the goods which had left the factory. Due to some defects the goods had come back under proper procedure. The assessee has followed the procedure for receiving back the said goods and they merely added water and dried them to remove the clotting in the granulates. Since the quantity received back had already duty pai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e-processing of duty paid goods. The appeal of the revenue was rejected. Even in the case of Shri Krishna Gyanoday Sugar Ltd. cited supra, the Hon'ble High Court has held that re-processing of defective sugar does not bring into existence of new sugar and the question of paying duty on re-processing is not sustainable. We notice in the present case that the appellants are merely wetting out the returned granulates and dried them again and there is no additional inputs to refresh the instant coffee. In these circumstances, we cannot hold there is a new process resulting in fresh instant coffee. 6. We, therefore, uphold the reasoning of the Commissioner in light of these judgments and we do not find any merits in this appeal. Hence, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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