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TMI Blog1999 (4) TMI 163X X X X Extracts X X X X X X X X Extracts X X X X ..... re engaged in the process of formulating and diluting the duty paid bought out concentrated technical grade pesticides by adding inert materials, stabilisers, solvents, emulsifier, etc. and dilute the concentrated pesticides. He further submitted that the characteristics of the technical grade pesticides and the use thereof remain the same even after the addition of stabilisers, solvents etc. that as no new product with distinct name, character or use emerges, the process carried out by them does not amount to manufacture. He relied upon the decision of the Appellate Tribunal in the case of C.C.E. v. Markfed Agro Chemicals Ltd. - 1993 (68) E.L.T. 848 wherein it was held that the process of dilution of concentrated pesticides by adding stabi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which is contrary to the decision rendered by the Tribunal...........It may be that the Board may not be in agreement with the view taken by the Tribunal. Then in that case, the board may carry the matter in appeal, but once the decision has become final by issuing circulars, the decision rendered by the Tribunal cannot be made to be nugatory. The Gujarat High Court, therefore, quashed the order No. 40/2/95-CX. The ld. Counsel also submitted that in their own case in LPA No. 211/95, the Madhya Pradesh High Court, vide order dated 6-1-1994, ordered that the Authorities shall not take into consideration the order under Section 37-B of the Act while exercising their quasi judicial functions and this will not be treated to be binding on the au ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ersing and stabilising agents resulted only in their dilution rendering them suitable for use either directly or after addition of water and formulation retained the name of the basic chemicals. Evidently no new product having distinctive name, character and use appeared as a result of such processing. Under these circumstances on the ratio of the decisions quoted above, we hold that the processes carried out by the Respondents did not constitute manufacture" within the meaning of Section 2(f) of the Central Excise and Salt Act, 1944." 5. Accordingly the ratio of the decision in the case of Markfed Agro Chemical is squarely applicable in the present matter. Following the said ratio we set aside the impugned order and allow the appeal. - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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