9911796707
TMI Blog2016 (1) TMI 1055X X X X Extracts X X X X X X X X Extracts X X X X ..... llant is engaged in marketing of Hydrogen gas cylinders. The appellant is receiving Hydrogen from M/s. Punjab Alkalies & Chemicals Pvt. Ltd. Naya Nangal through pipeline. The gas so received is filed in returnable gas cylinders with identification mark of the appellant and sold to various consumers who are manufacturer of Vanasapati Ghee. The filling process is done by the appellant with the aid of filter, dehydration and compressor. Revenue is of the view that activity undertaken by the appellant amounts to manufacture. Therefore, they are liable to pay duty on gas cylinders. Consequently, various periodical show cause notices were issued to the appellant which was adjudicated and duty was demanded along with interest and equivalent amount ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld that filling of Ammonia gas from bulk tanker into small containers will not amount to manufacturing process. He also relied on the decision of Shivam Industries v. CCE, Allahabad - 2012 (281) E.L.T. 598 (Tri.-Del.) and Lupin Laboratories Ltd. v. CCE, Aurangabad - 2002 (139) E.L.T. 366 (Tri.-Mum.) which has been affirmed by the Hon'ble Apex Court reported in 2004 (166) E.L.T. A116 (S.C.). 4. On the other hand, ld. AR oppose the contention of the ld. Counsel and submits that as per sub-chapter Note No. 9 of Chapter 28 "Labelling or re-labelling of containers and packing from bulk pack to retail packs or adoption of any treatment to render the product marketable by the consumer shall amount to manufacture." As the appellant is engaged ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essure gas into the cylinders. The allegation of the Revenue is that this activity renders the product marketable to the consumer. As the gas received by the appellant through pipeline is not usable or consumable. Therefore, the gas received in pipeline is not marketable to the consumer in the state in which it is received by the appellant. On examining the activity undertaken by the appellant, the issue before us is that "whether the activity of the compressor, oil filtration and removing moisture in gas by drying renders the gas marketable to the consumer" and consequently in terms of Chapter Note 9 of Chapter 28 of the Central Excise Tariff Act, 1985, the activity of the appellant amounts to manufacture or not. 7. To analyse the is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... activity undertaken by the appellant renders the product marketable to the consumer or not. The said issue has been examined by this Tribunal in the case of Shivam Industries (supra) wherein this Tribunal has observed in paras 6 & 7 as under : "6. There is no dispute about the fact that the appellants purchased duty paid transformer oil in bulk and after filtration and heating used the same for filing the cavities of the transformers being repaired as liquid insulator. According to the department, this process would be covered by the definition of manufacture under Section 2(f)(ii) of Central Excise Act, 1944 read with Chapter Note 4 of Chapter 27 of the Central Excise Tariff. 7. Under Section 2(f)(ii) the manufacture include ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
