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TMI Blog2014 (9) TMI 737X X X X Extracts X X X X X X X X Extracts X X X X ..... raction from petroleum is charged in to a reactor, treated with acid and aqueous Sodium Carbonate solution is added to remove the acid. The material is checked for neutral PH-7. Thereafter, the material is send for quality analysis in semi finished condition and after getting the analytical report, the material is filtered and packed in consumable pack of 1Lt. glass bottle. After packing, the filled bottles are then pasted with product labels and then sent to shipper ready for dispatch. The contention of the respondent that they have been doing merely repacking and have not undertaken any reprocessing is not correct. The value addition which the appellant has achieved on account of these processes is of order of 200% which is substantial. If the activity undertaken by the appellant is merely repacking, we do not understand how a value addition 200% could be achieved. Therefore, the argument of the appellant that they had undertaken only re-packing is without any basis and merits rejection. In the label for the input raw material, the product is merely declared as Petroleum Benzine 65/70. There is no indication as to the usage for specific industry or otherwise. It is also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... came to the conclusion that these activities did not result in manufacture of a new product and therefore, the said process undertaken does not amount to manufacture . Aggrieved of the same, the Revenue is before us. 3. In the appeal memorandum, it has been urged that on account of the processes undertaken, there is a change in the specification of the products and the products became fit for exclusive use in pharma, food or pesticide industry. Further, the product is marketed in a different name and form from the original input/raw materials, which they procured. The input raw material was described as Mintroleum PE 65-70 and were supplied in drum of 210 Ltrs. The products manufactured by the appellant are marketed as Hexane Fraction from Petroleum and Hexanes from Chromatography and were packed in packing of 500 Ml, 1.00 Ltr, 2.5 Ltr, etc. The products were packed under nitrogen and filtered with 0.2 MM filter. There was also a declaration that the products have been specially packed for the exclusive use of pharma, food or pesticides industry or for the purpose of servicing the said industries. Thus, a new product has emerged having a different name, character and use and t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. The learned Counsel for the respondent refuted the arguments of the Revenue. He submits that in most of the cases, the appellant had undertaken only repacking of the goods and no purification process was undertaken and mere repacking from bulk pack to retail pack would not amount to 'manufacture'. He further argued that in respondent's own case this matter has been examined earlier and the duty demands were dropped vide Order-in-Appeal No. PCJ/536.BOM-III/94 dated 26/09/1994 and the said decision was upheld by this tribunal vide final order No.995/98-C dated 12/10/1998. Therefore, the order of the lower appellate authority is sustainable in law. In any case, the department was well aware of the activity undertaken by the respondent and therefore, the question of invoking the extended period of time would not arise at all. He further submitted that if the activity undertaken by the respondent is held as manufacture and the respondent is liable to duty, then respondent would be eligible for the Modvat Credit of the duty paid on the input material and if such credit is allowed, the duty demand would come down substantially. It is also his contention that the raw mat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... After packing, the filled bottles are then pasted with product labels and then sent to shipper ready for dispatch. From these letters on record, it is clear that the appellant has undertaken certain manufacturing processes, testing, re-packing into smaller bottles, pasting labels of the manufacturer and so on. The labels also specifically indicate the use and the product is also declared as Hexane chromatography, hexane fraction from petroleum and so on. In the label for the input raw material, the product is merely declared as Petroleum Benzine 65/70. There is no indication as to the usage for specific industry or otherwise. It is also observed that BIS 3470 2002 lays down specifications for hexane, food grade, the parameters of which are satisfied by the products marketed by the appellant. Therefore, we have to conclude that a new product has emerged, having a distinct character, name and use after the various processes undertaken by the appellant and therefore, these processes undertaken by the appellant and therefore, the processes undertaken by the appellant amounts to 'manufacture' as defined in Section 2 (f) of the Central Excise Salt Act, 1944. The criteria of & ..... X X X X Extracts X X X X X X X X Extracts X X X X
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