9911796707
TMI Blog2007 (7) TMI 64X X X X Extracts X X X X X X X X Extracts X X X X ..... C grade Akay lose rejected the same on the grounds of not confirming to the standards. The appellant filed D-3 declaration showing the receipt of this 9000 kgs of rejected SCMC Akaylose TM Grade. After the verification of the said goods by the authorities, the appellants consumed these 9000 kgs of rejected SCMC by blending it with another grade of SCMC AKAYLOSE SD. Subsequently the appellants cleared 27000 kgs of SCMC AKAYLOSE SD Grade but paid duty only on 18000 kgs of SCMC and claimed benefit of provisions of Rule 173H for the 9000 kgs of SCMC AKAYLOSE TM Grade used in the remaking of such AKAYLOSE SD Grade. Show cause notice was issued to the appellant for the demand of the duty on the ground that the 9000 kgs. of AKAYLOSE TM Grade are d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ade and on rejection of this goods by the purchasers, the appellants received back the goods and declared it to the authorities under the provisions of Rule 173H of erstwhile Central Excise Rules 1944. It is also undisputed that the appellants had maintained proper records as to the receipt of the rejected goods and consumption thereof in the further processing of SCMC. On perusal of the Form-V register, as produced by the appellant, it is seen that the appellants had very clearly mentioned in the Form-V register that the rejected SCMC of AKAYLOSE TM Grade has been issued for blending. On such completion of the blending, the resultant production was also SCMC but of AKAYLOSE SD Grade. It is undisputed that both the grades i.e. AKAYLOSE TM a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... change of some parts cannot be taken to be manufacture of a new product for excise purposes. Once the facility of 'remaking' is available the term 'remaking has to be given a meaningful meaning. Remaking of this would involve some change which is felt necessary by the assessee for the purpose for which the goods were brought inside the factory. In our view in the context of the appellants operations the appellants can be taken to have come within the parameters of Rule 173H. Rule 173H does not envisage any payment of duty in respect of the goods cleared from the factory after the operations permitted to be carried out under Rule 173H have been carried out. Unlike Rule 173L where on receipt of the goods duty paid refund is contemplated in re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, 1992 (42) ECR 522 is not relevant to the present dispute. In the case of J.G. Glass Ltd. as also Stertilite industries, the process involved in remaking of the defective goods which could be termed as manufacture. The process involved in the case of Sriram Pistons also amounted to remelting and re-manufacturing. However, in the latter two cases the Tribunal has gone clearly on the ground of an ambiguity in the structure of contested rule. The Ld. Collector in his order has also stressed this very point. In the present case although the process of remaking was almost identical to the process of manufacture, it did not involve the degree of processing which was before the Tribunal in the two cited cases. On this ground I find that the Co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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