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TMI Blog2012 (6) TMI 731X X X X Extracts X X X X X X X X Extracts X X X X ..... HSD" with Multifunction Additives does not bring about a new distinct product and such process cannot be treated as manufacture - Following decision of HINDUSTAN PETROLEUM CORPN. LTD. Versus COMMR. OF C. EX, DELHI & ROHTAK [2008 (9) TMI 154 - CESTAT, NEW DELHI] - Decided in favour of assessee. - CE. 3469 of 2006 - A/661/2012-EX (BR) - Dated:- 7-6-2012 - Ajit Bharihoke And Rakesh Kumar, JJ. For the Appellant : Shri R K Hasija, Adv. For the Respondent : Shri Nagesh Pathak, DR. Per: Ajit Bharihoke: This appeal is directed against the Order-in-Original dated 21st July, 2006 whereby the Commissioner, Central Excise, Lucknow confirmed duty demand of Rs.1,68,17,565.10 against the appellants under Section 11A of the Central Excis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emand of Rs.1,68,17,565.10/- in respect of sale of branded fuels was issued to the appellants. The appellant contested the show cause notice. However, after affording opportunity of being heard to the appellant the jurisdictional Commissioner confirmed the duty demand of Rs.1,68,17,565.19 and also imposed penalty of equal amount against the appellants. 4. The point in dispute in this appeal is whether blending of ordinary petrol or HSD with MFA and selling the blended product under brand names "Power" and "Turbo Jet" at a higher price amounts to manufacture, and whether branded petrol and branded HSD would be liable to duty once again under Sub-heading 2710.11 and 2710.19 respectively? 5. Learned Counsel for the appellant assailing the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion Additives does not bring about a new distinct product and such process cannot be treated as manufacture. Relevant observations of this Tribunal are reproduced thus: "4.1 The MS and HSD after being blended with small quantity of MFAs remain MS and HSD only, conforming to ISI specifications IS : 2796 - 2000 and IS : 1460 - 2000 respectively. Just because blending improves their quality and after blending they are sold under different brandnames like 'Speed' , 'Power', 'Turbojet' etc. they do not become products different from unblended MS/HSD, with different characteristics and usages. Their characteristics remain the same, as they both have to conform to the ISI specification for unblended MS/HSD and their usage also remain the same ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase as, as mentioned above, the MS and the HSD after blending with MFA remain MS and HSD only and except for a brand name being added to their names, there is no change in their basic characteristics and usages. As mentioned above, there is no separate ISI specification for branded MS or branded HSD and both branded as well as unbranded MS/HSD have to conform to the same ISI specifications. Similarly, there is no change in their use. Thus applying the above-mentioned criteria laid down by the Hon'ble Supreme Court as to what constitutes manufacture, the process of blending ordinary MS or HSD with MFA to make branded MS or branded HSD, does not amount to manufacture." 6. We find no reason to disagree with the aforesaid view taken by the Co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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