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TMI Blog1999 (8) TMI 594X X X X Extracts X X X X X X X X Extracts X X X X ..... ollows:- M/s. Lupin Laboratories Ltd., and M/s. Themis Chemicals Ltd., manufacture Ethambutol Hydrolchloride I.P. For this purpose they imported two items (i) DL2 Aminobutanol and (ii) Tartaric Acid. Tartaric Acid is duty paid with additional customs duty i.e., countervailing duty equal to excise duty. These two imported items by a process brings out two products, (i) D.2 Aminobutanol and (ii) L.2 ABT. Latter product L.2 ABT is sent by both the aforeaid Drug Manufacturers to a third respondent herein i.e., Yash Pharma Chem (Bombay) Pvt. Ltd., for the purpose of recovery of tartaric acid contained in L.2 ABT. 2. Revenue contends that duty is chargeable on this tartaric acid so recovered by Yash Pharma Chem on the ground that it is a n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also gave a process chart indicating how Tartaric Acid remained Tartaric Acid all through, but only by process it was purified of all contaminations i.e. simply purification. The word 'manufacture' implies a change but every change in the raw material is not manufacture. There must be such a transportation that a new and different article must emerge having a distinctive name, character or use. Mere labour bestowed on an article even if the labour is applied through machinery will not make it a manufacture unless it has progressed so far that a transformation ensures, and the artical becomes commercially known as another and different article from that with which it began its existence. It must not be a commodity which is commercially kno ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee to the two principal manufacturers was a distinct product classifiable under Chapter No. 29.18 chargeable to duty and that the said facility under Rule 57F(2) read with Notification No. 214/86, dated 25-3-1986 was not applicable to the impugned product as it was used in the manufacture of the end product Viz. Ethombutol Hydrochloride I.P. which was exempted from duty vide Notification No. 31/88, dated 1-3-1988." 5. Learned SDR, Shri K. Srivastava eloborating the aforesaid grounds of appeals submitted that product received by the respondent Yash Pharma was L2 ABT, a salt of Tartaric Acid. Salt is different from Acid of which it is salt. He, therefore, submits that L2 ABT is different product with which respondent Yash Pharma under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d it is not a process of manufacture of Tartaric Acid. Infact, they have gone to the extent of saying that Tartric Acid is not produced in India. Tartaric Acid is not produced and this process is not carried out by the respondent Yash Pharma. Learned Advocate further submits that despite this evidence from the side of the respondents there is not a whisper about it either in the CBSE's order or in the memo of appeals filed by the Revenue to rebut the said affidavit. There is no counter-affidavit of any expert that process undertaken by the respondent Yash Pharma is a process of manufacture of Tartaric Acid. He, therefore, submits that on the basis of the evidence available on record, it is clear that no new product comes into existence and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndertaken by the respondents is one of recovery of Tartaric Acid and not a process of manufacture of Tartaric Acid. We also observe as rightly pointed out by the learned Advocate, Shri Bhat for the main respondent M/s. Yash Pharma that this evidence adduced by the respondents have gone unrebutted by the Revenue. The process undertaken by the respondents may be a chemical process but as laid down by the Apex Court what is to be determined is whether new product having different name, use and character have come into existence or not. We observe that the respondents herein initially started with Tartaric Acid. An intermediate product arose which has been processed by the main respondent Yash Pharma containing that Tartaric Acid and this has b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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