2014 (11) TMI 277

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..... re, packaging is a statutory requirement for sale of fertilizer by M/s Zuari Industries Ltd. If marketing of fertilizer cannot take place without packaging, the appellant is a manufacturer as per section 2(f)(i) of the Central Excise Act, 1944, wherein manufacture includes any process incidental or ancillary to the completion of a manufactured final product. - appellant being a manufacturer is doing the packaging activity and does not fall under packaging activity defined in section 65(76b) of the Finance Act, 1994. - Decided in favour of assessee.
Ashok Jindal and P S Pruthi, JJ. For the Appellant : Shri Naresh Thacker, Adv For the Respondent : Shri B.Kumar Iyer, Supdt. (AR) JUDGEMENT Per: Ashok Jindal: The appellant is in appeal a .....

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..... or sale, stock or exhibit for sale or distribute (a) any fertilizer the container whereof is not packed and marked in the manner laid down in this order; (b) any fertilizer the label or container where bears the name of any individual firm or company purporting to be manufacturer of the fertilizer, which individual, firm or company is fictitious or does not exist". Further as per clause 21 "Every manufacturer and pool handling agency shall in regard to packing and marking of containers of fertilizers comply with the following requirements." 4. Therefore, the packing of fertilizer is a statutory activity under the Fertilizer Control Order without which the fertilizer cannot be marketed. He further submits that as per section 2(f) of the Cen .....

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..... r the definition of section 2(f) of the Central Excise Act, 1944. As the process undertaken by the appellant is not a process incidental or ancillary to complete the manufactured product as the fertilizer is already completed. He further submits that for bulk sale of fertilizer, no packaging is required. In these terms, the appeal is required to be dismissed. 4. Heard both sides. Considered the submissions in detail. 5. As per Essential Commodity Act 1955, read with Fertilizer Control Act Order 1985, we find that it is cleared that fertilizer cannot be marketed without packaging in the manner specified under the said order, thus packaging of fertilizer is a statutory requirement for sale of the fertilizer. We further find that sale of fer .....

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