9911796707
TMI Blog2002 (1) TMI 1261X X X X Extracts X X X X X X X X Extracts X X X X ..... facture water storage tanks, in the manufacture of which, they get the impugned powder, which falls under Heading 39.01 of the Schedule to the Central Excise Tariff Act; that the respondents were availing of benefit of Notification No. 217/86-C.E., dated 2-4-86 and subsequently Notification No. 67/95-C.E., dated 16-3-95 in respect of impugned powder; that as the water storage tanks up to 300 lt. is subjected to nil rate of duty, show cause notices were issued for disallowing the benefit of Notification Nos. 217/86 and 67/95-C.E.; that the Assistant Commissioner, however, withdraw the proceedings for demand on the ground that the process carried out on converting polymers granules into powder does not bring into existence a new and distinct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Pvt. Ltd. v. CCE [1990 (49) E.L.T. 326 (S.C.)] wherein it was held that lamination of duty paid craft paper with polyethylene results in polyethylene laminated craft paper and the process amount to manufacture. 3. Shri Pankaj Mullick, ld. Advocate, on the other hand, submitted that the plea of marketability taken by the ld. DR, as well as in the memo of Appeal, is not supported by any documents and it is in the shape of a bland statement; that further, no application has been filed by the Revenue for admission of additional evidence by the Appellate Tribunal as is required under the CEGAT (Procedure) Rules. He further, submitted that it is not the case of the Department that the powder manufactured by said Polycon International Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n. Finally the ld. Advocate mentioned that if the impugned powder is held to be dutiable, the respondents would be eligible for availing of the Modvat credit of the duty paid on inputs as held in the case of Vivek Rerolling Mills v. CCE, Chandigarh [1994 (73) E.L.T. 660]. 4. We have considered the submissions of both the sides. The facts, which are not in dispute are that the granules of LLDPE/LDPE/HDPE are converted into powder form by all the respondents. In terms of Note 6(b) to Chapter 39 of the Central Excise Tariff, conversion from one primary form into another primary form amounts to manufacture. Accordingly, the conversion of granules into powder form will amount to manufacture. It is well settled law that the marketability of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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